M&AInfrastructureRUMOURED
Ferrovial in Talks to Acquire US Highways Following Strong Nine-Month Results
Acquirer
Ferrovial
Target
I-24 and I-285 highway projects
Spanish infrastructure group Ferrovial reported an operating profit of 848 million euros for the first nine months of the year, representing a 12% decrease year-on-year, alongside a 7.1% increase in sales driven by US toll roads. The company is exploring new highway opportunities in the North American market after securing the I-24 in Tennessee and the I-285 in Georgia.
✦ Meridian Analysis
Ferrovial is reported to be in talks to acquire additional U.S. highway assets after the Spanish group posted a 7.1 % rise in sales and an operating profit of €848 million for the first nine months of the year.
The rumour concerns the I‑24 corridor around Nashville, Tennessee, and the I‑285 beltway in Atlanta, Georgia. Ferrovial already holds a 50‑year build‑operate‑transfer concession for the I‑24 express lanes.
In a typical concession acquisition the buyer finances an upfront payment – in the case of the existing I‑24 and I‑285 deals Ferrovial committed roughly $34 billion and $32.7 billion respectively – and then collects toll revenues over the concession term.
What remains undisclosed are the exact price Ferrovial would pay for any new assets, the leverage ratio of the financing package, and the identities of the financial advisers involved. Confirmation of regulatory approvals and a detailed timetable for closing will be critical for assessing the final structure of the deal.
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