PSP Investments Acquires Stake in 407 ETR
Deal News | Mar 13, 2025 | PR Newswire Cision PSP Investments
In a strategic move, PSP Investments, a leading Canadian pension investor, has acquired a 7.51% minority stake in 407 Express Toll Route (407 ETR) for approximately $2.39 billion from CPP Investments. This transaction positions PSP Investments alongside CPP Investments and Ferrovial in the ownership structure of 407 ETR, a crucial electronic toll road in the Greater Toronto Area. Simultaneously, CPP Investments and Ferrovial have entered agreements to acquire AtkinsRéalis' remaining 6.76% stake in 407 ETR, ensuring long-term performance amid rising traffic demands. Ferrovial will maintain a controlling interest in 407 ETR with 48.29%, followed by CPP Investments and institutional investors with 44.20% and PSP Investments with 7.51%. The transactions underscore PSP Investments' focus on strategic infrastructure investments in high-quality global assets.
Sectors
- Infrastructure Investment
- Transportation
- Financial Services
Geography
- Canada – The transaction involves Canadian entities PSP Investments and CPP Investments, and the 407 ETR is located in the Greater Toronto Area, Canada.
- Spain – Ferrovial, a major stakeholder in 407 ETR, is a Spanish infrastructure company.
Industry
- Infrastructure Investment – The article revolves around significant investments in the 407 Express Toll Route, reflecting PSP Investments' strategy in the infrastructure sector.
- Transportation – The 407 ETR is an electronic toll road, making the transportation sector a key part of this investment transaction.
- Financial Services – The involvement of large pension investment boards highlights the financial services sector's role in managing and investing large pools of funds.
Financials
- $2.39 billion – The purchase price paid by PSP Investments for the 7.51% stake in 407 ETR.
- 5.81% – The net share sold by CPP Investments after the overall transaction.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| PSP Investments | Buyer | Company | A major Canadian pension investment board acquiring a 7.51% stake in 407 ETR. |
| CPP Investments | Seller/Buyer | Company | Canada Pension Plan Investment Board selling a portion of its stake to PSP Investments and buying from AtkinsRéalis. |
| Ferrovial | Buyer | Company | A global infrastructure company acquiring additional stake from AtkinsRéalis. |
| AtkinsRéalis | Seller | Company | Selling its remaining 6.76% interest in 407 ETR to CPP Investments and Ferrovial. |
| 407 ETR | Target | Company | The electronic toll road entity in the Greater Toronto Area being invested in. |