PSP Investments Strengthens Stake in 407 ETR with Strategic Acquisition
Deal News | Mar 13, 2025 | PR Newswire Cision PSP Investments
PSP Investments, one of Canada's largest pension investors, has announced a strategic acquisition of a 7.51% stake in 407 Express Toll Route (ETR) from CPP Investments for $2.39 billion, with an additional deferred payment to follow within 18 months. This transaction will solidify PSP Investments' presence in the Greater Toronto Area's infrastructure, marking its largest infrastructure commitment in Canada to date. In parallel, CPP Investments and Ferrovial are set to acquire an aggregate 6.76% stake in 407 ETR from AtkinsRéalis, which will exit its shareholder position. Following the transactions, ownership of 407 ETR will be divided among Ferrovial (48.29%), CPP Investments and other institutional investors (44.20%), and PSP Investments (7.51%). The strategic collaboration aims to optimize returns and enhance regional transportation infrastructure.
Sectors
- Infrastructure Investment
- Transportation
Geography
- Canada – PSP Investments, CPP Investments, and 407 ETR are based in Canada, playing vital roles in the national and regional infrastructure investment space.
- Greater Toronto Area – The 407 ETR spans this region, and the transactions discussed are central to infrastructure and transportation developments in this heavily populated Canadian area.
Industry
- Infrastructure Investment – The article discusses the acquisition and management of stakes in toll highway 407 ETR, which is a key infrastructure asset in the Greater Toronto Area.
- Transportation – The focal point of the investment is 407 ETR, a major highway which is a critical component of transportation infrastructure serving millions of Canadians.
Financials
- $2.39 billion – Purchase price payable by PSP Investments for a 7.51% stake in 407 ETR.
- C$699.6 billion – Total fund size managed by CPP Investments as of December 31, 2024.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| PSP Investments | Bidding Companybuyer | Company | One of Canada’s largest pension investors acquiring a strategic interest in the 407 ETR. |
| CPP Investments | Selling Company | Company | Selling a portion of its stake in 407 ETR while also acquiring part of AtkinsRéalis' stake. |
| 407 Express Toll Route (407 ETR) | Target Company | Company | A major toll highway in the Greater Toronto Area, subject to ownership restructuring. |
| Ferrovial | Other Company | Company | A global infrastructure company acquiring part of AtkinsRéalis' share in 407 ETR. |
| AtkinsRéalis | Selling Company | Company | Engineering services company selling its remaining stake in 407 ETR to CPP Investments and Ferrovial. |