Infrastructure company Ferrovial has completed the acquisition of a 3.3% stake in 407 International (407 ETR) from affiliates of AtkinsRéalis Group, consolidating its position in the Canadian toll highway.
The company has also exercised its call option to acquire an additional 1.76% of the common shares of 407 ETR, after receiving all necessary approvals.
The closing of the call option is scheduled for 11 June 2025.
The transactions, which involve the acquisition of corporations controlled by AtkinsRéalis holding the relevant 407 ETR common shares, represent a total investment by Ferrovial of C$1.99bn ($1.45bn) for a 5.06% stake.
This investment breaks down to C$1.35bn for the initial 3.30% stake and C$637m for the subsequent 1.76%, with the latter adjusted according to a pre-agreed formula.
With these acquisitions, Ferrovial’s ownership in the Canadian highway has increased from 43.23% to 48.29%.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataAtkinsRéalis, in a separate deal, has also finalised the sale of its remaining 1.7% stake in 407 ETR to Canada Pension Plan Investment Board (CPP Investments). Meanwhile, Public Sector Pension Investment Board (PSP Investments) has acquired a 7.51% interest in 407 ETR from CPP Investments.
Following these transactions, the ownership structure of 407 ETR has now Ferrovial at 48.29%, CPP Investments and other institutional investors at 44.20%, and PSP Investments at 7.51%.
Highway 407 ETR is a 108km toll route in Ontario’s Greater Toronto Area, significantly contributing to the reduction of traffic congestion.
Ferrovial, since 1999, has been a shareholder of 407 ETR, which is focused on improving mobility in the Greater Toronto Area.
In a recent financial update, Ferrovial reported a 19.1% rise in adjusted earnings before interest, taxes, depreciation, and amortisation to €309m for the first quarter of 2025 compared to the same period of last year.
