Shareholder Revolt Erupts Over Proposed HICL-TRIG Merger

On November 17, 2025, two of Britain's largest investment trusts, HICL Infrastructure and The Renewables Infrastructure Group (TRIG), announced plans to merge and create the UK's largest listed infrastructure fund worth over £5.3 billion. However, the deal has faced a strong backlash from a leading shareholder.

CG Asset Management, which owns nearly 1% of HICL, has strongly criticized the proposed merger. In a letter to HICL's chairman, the London-based fund manager said it is "appalled" by the announcement, calling it an "exceptionally poor transaction" that is "value-destructive" for HICL investors. The firm sees no strategic rationale for combining HICL's portfolio of schools, hospitals, and transport projects with TRIG's renewable energy assets, stating the two companies operate in "entirely different asset classes."

Despite the merger being touted by HICL and TRIG as creating a "more compelling proposition" with "greater scale, liquidity and relevance to a broader investor base," the market reaction suggests otherwise. While TRIG's shares rose 5.6%, HICL's stock tumbled 6.6%, indicating investors' disapproval of the deal.

Analysts at RBC Capital Markets have viewed the merger positively, but others, like AJ Bell's Russ Mould, have questioned whether HICL shareholders want exposure to a renewable energy specialist like TRIG. The big unknown is whether the combined entity will be able to deliver the promised benefits to investors.