Ferrovial Enhances Investment with New Stake in 407 ETR

Author: Logan Wright Updated: 03-13-2025 09:44 AM

Ferrovial's Strategic Acquisition in 407 ETR

Ferrovial is set to enhance its stake in 407 ETR by acquiring an additional 5.06% from AtkinsRéalis, bringing its total ownership to 48.29%. This significant transaction involves an investment of approximately CAD $2.09 billion and showcases Ferrovial's commitment to vital transportation infrastructure.

Transaction Structure and Details

The acquisition is structured into two tranches. The first tranche of 3.30% is expected to close immediately, while the remaining 1.76% will be deferred, with a timeline of up to 18 months post-closing, executed via a put and call option agreement. The specific terms will incorporate adjustments based on an agreed formula, ensuring fairness for both parties involved.

Related Strategic Transactions

In conjunction with this acquisition, AtkinsRéalis announced its plans to divest its remaining 1.7% interest in 407 ETR to the Canada Pension Plan Investment Board (CPP Investments). Additionally, the Public Sector Pension Investment Board (PSP Investments) has committed to acquiring a 7.51% interest in 407 ETR from CPP Investments. These transactions are set to further reshape the ownership dynamics surrounding this critical infrastructure asset.

Significance of Highway 407 ETR

Highway 407 ETR is a vital 108-kilometer, all-electronic toll road in the Greater Toronto Area. Its role in easing congestion on local roadways is invaluable, with over three million travelers utilizing it each week. This highway not only facilitates mobility but also plays a significant role in supporting economic growth within the region.

Ferrovial’s Long-Term Commitment

Ferrovial's relationship with 407 ETR began in 1999, highlighting its deep-rooted commitment to improving transportation in the Greater Toronto Area. The company has continuously demonstrated strong collaboration with partners, contributing positively to regional infrastructure and economies.

About Ferrovial

As one of the leading infrastructure companies globally, Ferrovial operates across more than 15 nations with a dedicated workforce exceeding 25,000 employees. Its presence is prominent in various markets, with listings on Euronext Amsterdam, the Spanish Stock Exchanges, and Nasdaq. Recognized for its commitment to sustainability, Ferrovial is included in prestigious sustainability indices and adheres to the principles set out by the UN Global Compact.

Frequently Asked Questions

What percentage of 407 ETR is Ferrovial acquiring?

Ferrovial is acquiring an additional 5.06% stake in 407 ETR from AtkinsRéalis.

What is the total investment amount for this acquisition?

Ferrovial's total investment for this acquisition is approximately CAD $2.09 billion.

What is Highway 407 ETR?

Highway 407 ETR is a 108-kilometer all-electronic toll highway in the Greater Toronto Area, critical for alleviating congestion.

When is the acquisition expected to close?

The transactions are anticipated to be completed during the second quarter of 2025, subject to customary closing conditions.

How does Ferrovial contribute to sustainability?

Ferrovial adheres to the principles of the UN Global Compact and is recognized in global sustainability indices, showcasing its commitment to responsible business practices.

About The Author

Dedicated Author and financial expert Logan Wright here, 29 years old. After earning an economics degree, I spent a number of years working in different financial industries. My great passion is enabling everyone, from any background or experience level, to understand and be literate in financial matters.

My books and writings are centered on simplifying difficult financial ideas into doable, understandable guidance. Whether it's retirement planning, investing, or budgeting, I want to arm readers with the information they need to make wise financial choices and realize their financial objectives.

Apart from writing, I also frequently post to financial blogs and organize webinars and workshops targeted at enlightening participants about personal finance. Always, my strategy is to offer concise, doable advice that can truly improve people's lives.

Away from work, I like to read, travel, and sample new foods. My goal is to infuse everything I do with the balance that I think is essential to both financial and personal well-being. By my profession, I want to encourage and enable people to confidently and clearly take charge of their financial futures.

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