- Atlas Arteria has received the regulatory approval for the Chicago Skyway purchase.
- Atlas will be buying 66.67% majority interest in the Chicago Skyway.
- The acquisition is likely to happen by early December this year.
Transportation behemoth in Australia Atlas Arteria (ASX:ALX) on 28 November 2022 announced that all the necessary regulatory approvals related to the acquisition of Skyway Concession Company have been received by Atlas. Atlas Arteria will be acquiring a 66.67% majority interest in Skyway. Atlas declared the deal on 14 September 2022.
Skyway Concession Company is the concessionaire of the Chicago Skyway.
The company shared via the ASX release that because all the major conditions precedent have now been satisfied, the acquisition will most likely occur by early December 2022.
Meanwhile, the shares of Atlas Arteria were trading 0.142% lower at AU$7.020 apiece at 11:51 AM AEDT on the ASX today.
Details of the acquisition deal
- Atlas Arteria will be buying 66.67% majority interest in Skyway.
- The acquisition cost is around US$2,013 million.
- The acquisition will create a significant collaboration with Ontario Teachers’ Pension Plan.
- Ontario Teachers’ Pension Plan is a leading infrastructure investor and possesses a 33.33% interest in Chicago Skyway.
- Skyway is an essential transport link in the third largest US metropolitan area, with a long-remaining concession life of 81 years.
- It is a 12.5 kms toll road providing congestion relief in an essential transportation corridor between Chicago, Illinois, and Northwest Indiana.
- As per Atlas, Skyway is situated in one of the densest urban areas in the country.
- After the acquisition, Atlas Arteria will get exposure to a tolling regime, likely to boost the toll growth by 19% in the next two years.