Canada-based infrastructure holding company ATCO has agreed to acquire a 40% interest in Neltume Ports, a Chile-based port operator, for around C$450m ($340m).

Neltume Ports, a subsidiary of Ultramar, primarily operates and develops ports, both cargo types and volume mix, across South America.

With a workforce of around 3,900 staff, the company deals with around 51 million tonnes of product annually, including copper, forestry products, consumer goods and agricultural products.

ATCO said that it will fund the deal through a combination of cash-on-hand and funds from committed credit facilities.

ATCO will also issue new shares from Neltume Ports as part of the deal.

Neltume Ports is expected to use the investment from ATCO to fund its growth.

ATCO added that the deal complements its current businesses, which comprises electricity and natural gas infrastructure, modular construction and logistical support services.

“We are excited to announce our investment in Neltume Ports, which further builds and strengthens our existing partnership with Ultramar.”

ATCO chair and CEO Nancy Southern said: “This acquisition represents an important milestone in the execution of ATCO’s long-term strategy to diversify and complement our portfolio of existing businesses and geographies in industries that are fundamental to global growth and prosperity: housing, real estate, energy, water, transportation, and agriculture.

“We are excited to announce our investment in Neltume Ports, which further builds and strengthens our existing partnership with Ultramar.

“Both of our companies view South America as an area poised for significant growth.”

In 2016, ATCO collaborated with Ultramar through ATCO-Sabinco, which offers modular solutions, container offices and workforce mining camps in Chile.

Ultramar currently operates 16 port facilities and three stevedoring businesses in Chile and Uruguay.