CDPQ Acquires 50% of Montréal’s A25 Concession from Transurban

Posted on 02/07/2023

Caisse de depot et placement du Quebec (CDPQ) reached an agreement with Transurban for the acquisition of a 50% interest in the A25 Concession, a 7.2-kilometer toll road and bridge network which serves as a vital component of the Greater Montréal transportation network. The A25 includes six kilometers of four-lane road and a 1.2 kilometer, six-lane bridge over the Rivière des Prairies.

The transaction, valued at $355 million, allows CDPQ to acquire a asset that plays a central role in the transportation of residents of Greater Montréal, as well as for the movement of merchandise in Québec and Eastern Canada. With a 50% stake, the CDPQ will have co-control of the A25 Concession. This is the second major partnership between CDPQ and Transurban, one of the world’s largest operators in the sector, following CDPQ’s 2021 investment in WestConnex, Australia’s largest road infrastructure project. A25 customers will not be affected by the transaction. Payment methods and customer support channels such as the website and service center will continue to operate as usual, as will the Government of Québec’s free toll measures for electric vehicle owners. inancial close is expected by March 31, 2023, subject to customary closing conditions and relevant consents and approvals. The A25 is under concession until September 2042. The concession agreement is with Ministère des Transports, de la Mobilité durable et de l’Électrification (MTQ)

The A25 opened in May 2011. This road was bought by Transurban from Macquarie Infrastructure Partners in March 2018. Transurban acquired 100% of the equity interests in the A25 for C$ 840 million plus acquisition costs of C$ 18 million.

Keywords: Transurban Holdings Limited, Transurban Group.

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