#Canada #Ontario #Ferrovial #AtkinsRéalis #407 ETR

Ferrovial's Acquisition Journey: A Steady Climb in Ownership of Highway 407 ETR

On June 6, 2025, Ferrovial, a prominent name in the global infrastructure sector, announced significant strides in its investment strategy with the acquisition of a 5.06% stake in Highway 407 ETR in Canada. This acquisition includes 25,580,287 common shares from AtkinsRéalis Group Inc., which constitutes approximately 3.3% of the total shares of 407 ETR. Furthermore, with the exercise of a call option, Ferrovial is set to acquire an additional 13,672,501 shares, translating to 1.76% ownership, making a combined stake that rises to 48.29% once finalized on June 11, 2025.

This investment, amounting to CAD $1.99 billion, underscores Ferrovial's commitment to expanding its presence in vital infrastructure assets. The deal comprised approx. CAD $1,353 million for the initial stake and CAD $637 million for the subsequent shares, reflecting Ferrovial's strategy of leveraging its established relationships.

With this acquisition, Ferrovial's total ownership of Highway 407 ETR has escalated from 43.23% to 48.29%, consolidating its position as the primary shareholder in this essential transportation asset. The Canadian toll highway plays a crucial role in easing the traffic burden in the Greater Toronto Area, facilitating over three million weekly travelers.

Highway 407 ETR: A Backbone of Mobility

Highway 407 ETR spans 108 kilometers and is known for its all-electronic tolling system. Launched to tackle congestion in one of Canada’s busiest regions, it serves as a vital link for residents and commuters alike, supporting the economic and social fabric of the Greater Toronto Area. As a long-term shareholder since 1999, Ferrovial has shown unwavering dedication to enhancing transportation outcomes and engaging with local stakeholders.

In parallel to Ferrovial's acquisition, two notable transactions occurred involving AtkinsRéalis, which divested its remaining 1.7% stake in the highway to Canada Pension Plan Investment Board, while the Public Sector Pension Investment Board secured a 7.51% share from the same entity. Consequently, the ownership landscape of Highway 407 ETR will reflect Ferrovial at 48.29%, alongside a 44.20% stake held by CPP Investments and other institutional investors, and PSP Investments at 7.51%.

Future Investments and Directions

As Ferrovial integrates this new ownership stake, it affirms its vision of fostering transportation advancements and improving roadways that cater to the growing demand in urban areas. The company's history of partnerships and collaborative efforts will remain pivotal in navigating the challenges of infrastructure management, which also includes adapting to evolving competitive market dynamics, legislative landscapes, and technological shifts.

The recent acquisition marks a critical juncture for Ferrovial as it seeks to expand its portfolio and ensure sustainability in operations, while effectively contributing to public mobility needs. The company remains poised for future growth avenues that will amplify its infrastructure footprint internationally, showcasing its commitment to excellence, innovation, and sustainable practices in the infrastructure domain.

In conclusion, Ferrovial’s increased stake in Highway 407 ETR reflects a robust strategic alignment aimed at enhancing transportation services. As the company capitalizes on this opportunity, its ongoing governance and strategic oversight will be crucial in meeting the mobility demands of the present and future.

Forward-Looking Statements

This article includes forward-looking statements regarding Ferrovial's business operations and future investments, including those tied to this acquisition. Actual results may vary, influenced by several factors such as economic conditions, compliance with regulations, and other uncertainties inherent in the infrastructure sector.