Transurban Group agreed to buy US$3.1 billion of Australian toll road assets from Canada Pension Plan Investment Board , increasing its stakes in three of Sydney’s busiest toll roads. The deal includes the acquisition of Canada Pension’s 25 per cent stake in NorthWestern Roads Group and a 10.5 per cent holding in Sydney Transport Partners, Transurban said in a statement Thursday. Following the transaction, Transurban will own 75 per cent of NorthWestern Roads, which owns the Westlink M7 and NorthConnex toll roads, and 60.5 per cent of Sydney Transport Partners, which owns WestConnex. The roads’ long-dated concessions and inflation-linked toll increases provide predictable revenue growth. WestConnex alone carries about 350,000 vehicles a day and can raise tolls by at least four per cent annually through 2040. “Sydney is a core market for Transurban,” chief executive Michelle Jablko said in the statement. The three toll roads “will play an important role in supporting Sydney’s growth for decades to come,” she said. CPPIB-backed Wolf Midstream greenlights $500-million expansionCPP research says global pension giants find gaps in Canada’s ‘investibility’ Completion of the deal is subject to several conditions, Transurban said, including approval from Australia’s competition watchdog. Bloomberg.com
CPPIB sells US$3.1 billion of Australian toll roads to Transurban
