Transurban Agrees to A$4.5 Billion Deal for CPPIB's Stakes in Major Sydney Toll Roads

By David Winning

SYDNEY--Transurban said it has agreed to acquire Canada Pension Plan Investment Board's stakes in two companies that own major Sydney toll roads, giving it majority control of three key arteries for commuter traffic.

Transurban said the deal for CPPIB's 25.0% interest in NorthWestern Roads Group and 10.5% stake in Sydney Transport Partners is worth some 4.5 billion Australian dollars, equivalent to US$3.12 billion.

The deal lifts Transurban's stake in NorthWestern Roads Group, which owns the Westlink M7 and NorthConnex highways, to 75.0%, from 50.0%. Transurban's interest in Sydney Transport Partners, which owns WestConnex, will rise to 60.5%, from 50.0%.

Transurban said it will initially fund the deal using debt and that no equity funding is needed. It expects to refinance its debt facilities into longer-term borrowings over time.

"We remain disciplined with how we allocate capital in our key markets of Australia and North America and we are committed to maintaining strong investment grade credit metrics," said Transurban Chief Executive Michelle Jablko.

Transurban expects to complete the deal in 2027.

Write to David Winning at david.winning@wsj.com

(END) Dow Jones Newswires

September 30, 2026 18:52 ET (22:52 GMT)