Transurban to Acquire CPPIB Toll Road Assets for $4.5 Billion

Transurban agreed to acquire the Australian toll road assets of the Canada Pension Plan Investment Board (CPPIB) for $4.5 billion in cash. The transaction increases Transurban's ownership of NorthWestern Roads Group, which owns Westlink M7 and NorthConnex, from 50% to 75%, and its stake in Sydney Transport Partners, the owner of WestConnex, from 50% to 60.5%.

Transurban will fund the acquisition through committed debt facilities and does not require equity funding. The company expects the move to be value accretive over the medium and long term without impacting distributions or free cash for the 2027 fiscal year. The company stated there will be no changes to tolls or the on-road experience for motorists in New South Wales.

The deal is subject to contractual approvals and clearance from the Australian Competition and Consumer Commission. Completion is anticipated during calendar 2027.