Australia’s Transurban has expanded its North American toll road operations into Canada, acquiring the A25 toll road and bridge in Montreal from Macquarie Infrastructure Partners for $C840 million ($A843 million).
The A25 is a 7.2km toll road and bridge connecting northern Montreal across the Riviere des Prairies to commercial and residential areas.
Transurban, which already operates toll roads in Washington DC in the US, said the acquisition of the A25 and entry into the Montreal region is aligned with the group’s strategy of focusing on heavily congested urban areas with strong demographics.
‘Montreal is an attractive second market for Transurban in North America as a developed economy with a growing population and a government that embraces innovative transportation solutions to tackle the region’s congestion problems,’ Transurban chief executive Scott Charlton said in a statement on Friday.
Transurban said the acquisition of the A25 would give it access into one of North America’s most heavily urbanised and congested regions and would support future development opportunities.
The A25 opened in May 2011, with a concession to September 2042.
The toll road carried an average of 44,616 vehicles in 2016 and 46,535 vehicles in 2017.
Transurban said the acquisition of the A25, once completed, would immediately add to Transurban’s distribution per security.
Transurban securities were five cents, or 0.5 per cent, lower at $11.12 at 1018 AEDT.