Matt Toledo of Chief Investment Officer reports CPP Investments partners with AT&T, GIP on fiber joint venture:

AT&T Corp. announced on Tuesday an agreement with the Canada Pension Plan Investment Board and BlackRock Inc.’s Global Infrastructure Partners unit to form a joint venture to invest in commercial fiber internet infrastructure.

The transaction is expected to close in the first half of 2027, pending regulatory approval.

Under the agreement, AT&T will hold a 50% stake in the venture—Forged Fiber 37—with GIP and CPP Investments owning the other 50%. A statement from AT&T noted that the new organization will accelerate the delivery of the infrastructure needed to support the high-performance connectivity demanded by the artificial intelligence boom.

“Demand for reliable, high-capacity connectivity continues to grow, making fiber infrastructure an increasingly important part of the digital economy,” said James Bryce, CPP Investments’ head of infrastructure, in a statement. “By combining AT&T’s extensive fiber expertise with strategic capital, this joint venture is well positioned to expand critical connectivity across the United States and to generate long-term investment value for the CPP Fund.”

GIP manages more than $200 billion in assets. CPP Investments managed C$863.6 billion ($606.46 billion) in assets as of June 30, benefiting more than 22 million contributors and beneficiaries.  

Investing.com also reports AT&T forms fiber joint venture with GIP and CPP Investments: 

DALLAS - AT&T Inc. (NYSE:T) announced today an agreement with affiliates of Global Infrastructure Partners and Canada Pension Plan Investment Board to form a fiber joint venture combining Forged Fiber 37 and Gigapower operations.

The joint venture will operate as a wholesale fiber commercial open access company. AT&T will hold 50% ownership, with GIP and CPP Investments collectively owning the remaining 50%, according to a press release statement.

Forged Fiber 37 is the subsidiary holding fiber assets AT&T acquired from Lumen Technologies on February 2, 2026. Gigapower is AT&T’s existing wholesale fiber joint venture with GIP.

The transaction supports AT&T’s plans to reach more than 60 million fiber locations by the end of 2030. The joint venture will enable fiber expansion in major metro areas across 16 states, including Arizona, Colorado, Florida, Oregon, and Washington.

"Fiber is the definitive connectivity technology for an AI-driven world," said John Stankey, Chairman and CEO of AT&T. "By partnering with leading digital infrastructure investors, we see significant opportunity to strengthen our scale advantage in fiber."

AT&T expects to receive proceeds at closing which it intends to use consistent with its capital allocation priorities, including achieving its net-debt-to-adjusted EBITDA ratio target in the 2.5x range within approximately three years.

The transaction is expected to close in the first half of 2027, subject to customary closing conditions and regulatory approvals.

Until closing, AT&T expects to continue reporting Forged Fiber 37 as held-for-sale and discontinued operations. After closing, AT&T does not expect to consolidate the joint venture’s financial results but plans to report its share of equity income or loss in earnings.

AT&T reaffirmed the financial outlook and capital allocation plan provided in its second-quarter 2026 earnings release.

GIP, part of BlackRock, has over $200 billion in assets under management. CPP Investments manages the Canada Pension Plan Fund, which totaled C$863.6 billion as of June 30, 2026. 

Yesterday, CPP Investments announced it will form a new fibre joint venture with AT&T and Global Infrastructure Partners:

The joint venture will bring together Forged Fiber 37 and Gigapower under one wholesale fiber commercial open access company to accelerate expansion of fiber internet across more U.S. communities 

Key Takeaways: 

• New joint venture will extend AT&T’s fiber scale advantage, bringing the unrivaled benefits of fiber connectivity – ultra high-speed, unmatched capacity, and world-class reliability – to more Americans while laying the foundation for an AI-enabled future 

• This joint venture will create new opportunities for AT&T to grow high-value customer relationships by offering fiber and wireless connectivity services together; customers who subscribe to both enjoy the fastest converged experience in the nation1 25

• Leading digital infrastructure investors Global Infrastructure Partners and CPP Investments will support AT&T’s plans to accelerate fiber expansion across more U.S. communities 

• Transaction is expected to close in the first half of 2027 

TORONTO, ON and DALLAS, TX, (October 6, 2026) – AT&T Inc. (NYSE:T) affiliates and affiliates of Global Infrastructure Partners (“GIP”), a part of BlackRock, and Canada Pension Plan Investment Board (“CPP Investments”) have agreed to form a new U.S. fiber joint venture (the “JV”) to bring fiber to more homes across the country.  

The JV will operate as a leading wholesale fiber commercial open access company and will include Forged Fiber 37 – the newly created subsidiary holding the fiber build engine, network assets, and operations that AT&T recently acquired from Lumen, and Gigapower – AT&T’s existing wholesale fiber joint venture with GIP.2  

The investments by AT&T – America’s largest fiber provider – and GIP and CPP Investments will enable the planned acceleration of fiber builds in more communities across the country. The JV will help accelerate delivery of critical infrastructure needed to help meet America’s growing demand for high-performance advanced connectivity as AI begins to reshape network traffic. This supports AT&T’s plans to reach more than 60 million fiber locations by the end of 2030.3  

“Fiber is the definitive connectivity technology for an AI-driven world,” said John Stankey, Chairman and CEO of AT&T. “Demand for symmetrical, high-capacity, low-latency connectivity is only increasing, and this JV will bring the unmatched benefits of high-speed, reliable fiber connectivity to more Americans. By partnering with leading digital infrastructure investors, we see significant opportunity to strengthen our scale advantage in fiber, broaden availability of our award-winning services and grow our leadership in converged fiber and 5G connectivity.” 

“Reliable, high-speed connectivity is becoming increasingly essential to how Americans work, learn and access services,” added Mark Florian, Head of GIP Mid-Markets Funds. “By bringing Gigapower and Forged Fiber 37 together, this joint venture with AT&T and CPP Investments aims to help meet growing demand for high-capacity broadband, while providing our clients with exposure to a scaled infrastructure business positioned to benefit from the long-term digitalization of the global economy.” 

“Demand for reliable, high-capacity connectivity continues to grow, making fiber infrastructure an increasingly important part of the digital economy,” said James Bryce, Managing Director and Head of Infrastructure at CPP Investments. “By combining AT&T’s extensive fiber expertise with strategic capital, this joint venture is well positioned to expand critical connectivity across the United States and to generate long-term investment value for the CPP Fund.”

I was going to cover this deal yesterday but wanted to take my time to cover it properly.

First, it's all about fiber nowadays. Back in March, AT&T said it will invest $250 billion to expand the US connectivity infrastructure:

AT&T will invest more than $250 billion through 2030 to expand fiber, wireless, and satellite connectivity infrastructure across the United States. The spending will also fund workforce training and infrastructure upgrades supporting more than 100 million customers on its networks.

“Today, we’re committing more than $250 billion to increase U.S. connectivity competitiveness and expand access to AT&T’s leading fiber and wireless networks,” AT&T Chairman and CEO John Stankey said.

The investment will support expanded fiber and 5G deployments, satellite coverage through AT&T’s collaboration with AST SpaceMobile (a company working to provide mobile broadband from space), and continued development of FirstNet—the nationwide network built for first responders such as police, firefighters, and emergency medical personnel.

Some have questioned the $250 billion figure, stating it's not as big as it sounds, but it's clear the company is on a mission to build out its fiber network all over the US.

More recently, AT&T announced it will commit $19 billion of investment in California’s fiber and wireless networks by the end of 2030, building the high-speed connectivity required for the next era of innovation and economic growth in the state.   

These are massive expenditures and that's where GIP (now part of Blackrock) and CPP Investments come in to help the company grow its fiber network, owning a big stake in these operations. 

As stated above, under the agreement, AT&T will hold a 50% stake in the venture—Forged Fiber 37—with GIP and CPP Investments owning the other 50%. 

Forged Fiber 37 will accelerate the delivery of the infrastructure needed to support the high-performance connectivity demanded by the artificial intelligence boom.

Just remember, huge telecommunications companies like AT&T need to spend massively to upgrade the US connectivity infrastructure and fiber is what it's all about: 

“Fiber is the definitive connectivity technology for an AI-driven world,” said John Stankey, Chairman and CEO of AT&T. “Demand for symmetrical, high-capacity, low-latency connectivity is only increasing, and this JV will bring the unmatched benefits of high-speed, reliable fiber connectivity to more Americans. By partnering with leading digital infrastructure investors, we see significant opportunity to strengthen our scale advantage in fiber, broaden availability of our award-winning services and grow our leadership in converged fiber and 5G connectivity.” 

“Reliable, high-speed connectivity is becoming increasingly essential to how Americans work, learn and access services,” added Mark Florian, Head of GIP Mid-Markets Funds. “By bringing Gigapower and Forged Fiber 37 together, this joint venture with AT&T and CPP Investments aims to help meet growing demand for high-capacity broadband, while providing our clients with exposure to a scaled infrastructure business positioned to benefit from the long-term digitalization of the global economy.” 

“Demand for reliable, high-capacity connectivity continues to grow, making fiber infrastructure an increasingly important part of the digital economy,” said James Bryce, Managing Director and Head of Infrastructure at CPP Investments. “By combining AT&T’s extensive fiber expertise with strategic capital, this joint venture is well positioned to expand critical connectivity across the United States and to generate long-term investment value for the CPP Fund.”

John Stankey, AT&T's CEO (featured above), has done a fantastic job leading this company, and he's not done yet.

This deal also reminds me of PSP's joint venture with BCE to accelerate Zipply Fiber's growth (see my coverage here).

It's not the same scale but you see how big telecom companies are partnering up with long-term capital investors to accelerate the growth of their fiber network.

That's a smart and efficient use of capital.

Below, AT&T CEO John Stankey and Corning Chairman and CEO Wendell Weeks discuss their companies' $3 billion fiber agreement on 'The Claman Countdown (from September 29th).

Also, what’s driving the next big shift in telecom? Nicolai Tangen talks with John Stankey, President and CEO of AT&T, about transforming a 150-year-old company for the AI era. They discuss why fiber infrastructure is critical, how AI will drive unprecedented data demand, and the role of satellite connectivity. 

Stankey shares his philosophy on cultural change, managing 130,000 employees, and why AT&T is focused on North America. With millions of customers and major fiber investments underway, AT&T is positioning itself for the next decade.

Brett House, a Canadian professor of economics at Columbia Business School, wrote a comment for the Globe and Mail on how to get Canada’s pension funds to invest more in startups:

The recent Canada Investment Summit mobilized $500-billion in new capital, according to the federal government, demonstrating that the world is paying attention to the country, particularly our major infrastructure and resource projects.

Canada now needs to put the same spotlight on the financing of its early-stage companies.

Canada’s major public pension funds, the Maple Eight, manage $2.6-trillion in assets, but just a fraction of these finance the country’s venture and growth companies, the engines of innovation and high-value job creation.

While the Investment Summit saw Canadian pension funds and insurers commit $100-billion in fresh capital to domestic investments, new funding for early-stage tech companies barely registered. The most exciting announcement for this sector, the roughly $1.4-billion Radical Breakouts Fund, underscored the scarcity of capital for innovation.

Canadian venture-capital fundraising declined year-over-year by 39 per cent to just over $2-billion in 2025. That’s well off the recent peak of $7.4-billion in 2022.

Consequently, when Canada’s most promising companies are ready to grow, they tend to seek foreign financing, largely from the U.S. In 2024, 84 per cent of Canadian companies’ growth-stage fundraising rounds included American investors. Moreover, in 2025, 60 per cent of venture capital raised in Canada came from American sources, the highest share in a decade. American funding increases the odds these companies will relocate to the U.S.

This won’t be changed through peer pressure or mandates imposed on the Maple Eight. Browbeating Canada’s pension funds into financing the country’s scale-ups is at odds with these funds’ fiduciary responsibilities and the opportunities innovation investing presents.

Fortunately, we have a model proven to draw investment into Canada’s venture capital pipeline. In 2013, the Canadian government launched the Venture Capital Action Plan (VCAP) and followed it with two rounds of the Venture Capital Catalyst Initiative (VCCI) in 2017 and 2021. An independent study for the Business Development Bank of Canada found that a combined government commitment of about $1.2-billion under the VCAP and VCCI has catalyzed more than $17-billion in private financing for Canada’s innovation economy.

These programs aren’t handouts. The federal government invests alongside private capital in a subordinated role: private investors get repaid first and earn enhanced returns. The government’s junior claims encourage private investments that may not otherwise happen. When investments succeed, the government shares their success.

This structure is consistent with the institutional duties of the Maple Eight. It provides diversified exposure to professionally selected investments on commercial terms, and Ottawa’s junior position boosts private capital’s risk-adjusted returns.

This model has also delivered results: in the BDC study, cash distributions to private investors in VCAP and VCCI partner funds outpaced global benchmarks for conventional fund structures, a direct result of Ottawa’s secondary role and strong asset selection by these funds.

Until now, these programs haven’t been structured to match the Maple Eight’s needs: most investment opportunities were too small for them and retaining capital at home wasn’t the priority it is now. The costs are visible today: the equity structures of some of Canada’s most successful innovation companies are dominated by American investors.

Canada’s Budget 2025 earmarked $1-billion for a new Venture and Growth Capital Catalyst Initiative (Growth VCCI), nearly three times more than its predecessors. Ottawa needs the Maple Eight’s engagement in it to attract the multiples of Canadian private capital achieved by the VCAP and VCCI. The right incentives are required to achieve this.

The Growth VCCI must be able to invest across the full lifecycle of innovative firms, from startups to later-stage growth companies, to facilitate pension fund co-investment. The Maple Eight will participate in the Growth VCCI if they can flexibly match opportunities to their mandates.

Ottawa should link infrastructure access to venture commitments. Rather than preaching to the Maple Eight or politicizing their investment decisions, participation in the airport concession scheme could be structured as an incentive to work with the Growth VCCI. Pension funds already prize infrastructure’s stable, long-term yields, which makes it a natural way to engage these funds with Canada’s innovation agenda.

In addition, the country’s pension funds should publicly report their allocations to Canadian venture and growth investments. What’s measured gets done.

With these features, the federal government could make the case for the Growth VCCI on returns, not nationalism. This argument would move real money.

Alright, Quebec elections today, my attention is focused there, but I wanted to cover this quickly.

I recently discussed why OMERS promoted Laura Lenz to lead its ventures group, noting this:

I've seen it all in venture cap: the good, the bad and downright ugly (I was at BDC in 2008, VC got massacred).

It's not an easy game but necessary and can be lucrative (just look at OTPP's success with SpaceX, and soon Anthropic and other companies in its portfolio, including Harvey, the leading AI legal platform). 

For it's part, OMERS Ventures has done very well with Xanadu despite that stock's recent selloff. 

Its Canadian focus comes at the right time but there is competition in the space.

I recently covered the Canada Investment Summit where I noted Radical Ventures launched Canada’s largest AI fund with $1-billion USD first close and lots of top Canadian pension funds backing it.

I said Canada's VC industry desperately needs major capital and expertise to nurture startups into mature growth companies. Hopefully this new fund will be a huge success.  

I wish the same for OMERS Ventures as Laura Lenz takes over the helm.

Just remember, venture cap is never an easy game; you can allocate $5 million or more to 100 companies and are lucky if one or two hit a home run (or grand slam like SpaceX). 

This is why pension funds typically allocate between 1 and 3% of their total assets to venture cap/ growth equity. 

Now, should Canada's pension funds report exactly how much they invest in Canadian startups (venture cap)? Sure, I am all for that proposal; more transparency is always better than less.

But should they invest more in Canadian venture capital specifically? There, I am more skeptical than Brett House and will freely explain why.

Most of the best opportunities in venture capital lie in the US. It's not even close because that's where the best, most innovation tech companies arise and they have the best ecosystem to nurture these companies, scale them and make them into global powerhouses (think Mag-7 and more recently SpaceX, Anthropic, OpenAI).

In Canada, apart from Shopify, there haven't been as many global tech successes. That's just a fact.

And I seriously doubt if the Maple 8 throw more capital their way, Canadian tech startups will rival their US counterparts.

Moreover, there's a reason why Canadian startups get funded by US VC funds; they're generally better positioned to help them grow their operations over the long run.

Sure, we have some good VC funds up here, but nowhere close to what they have down south.

Nor do we have a Nasdaq up here. 

All this to say, I'm genuinely skeptical about all these proposals for the Maple 8 to fund more venture capital in Canada. Something just doesn't sit well with me.

Alright, let me end it there; time to watch Quebec election results.  

Below, on this episode of The Buck Stops Here, host Catherine Murray speaks with John Ruffolo, founder and managing partner of Maverix Private Equity, about Canada's economic sovereignty. Ruffolo explains why he believes Canada's greatest trading partner must be itself, why exporting raw resources and buying back finished goods isn't a path to prosperity, and how food and healthcare security became urgent lessons after COVID. 

He also unpacks how Canada birthed the AI industry through Geoffrey Hinton's research at the University of Toronto but failed to commercialize it, and why critical minerals and domestic processing could put Canada back in the game. Excellent discussion; John provides great insight shere.

Sarah Min, Davis Giangiulio, Chloe Taylor,Lee Ying Shan and Ananya Chetia of CNBC report stocks rise Friday after soft jobs data, Nvidia leads Nasdaq to intraday record: 

Stocks rose Friday following a surprisingly weak jobs report that raised hopes the Federal Reserve will hold rates steady in October.

The Dow Jones Industrial Average added 250 points, or 0.5%, to close at 51,176.46. The S&P 500 gained 0.7%, rising 56.27 to 7,722.72, while the Nasdaq Composite climbed 1.2%, adding 319.27 to 27,190.86, hitting an all-time high earlier in the day before pulling back as Treasury yields reversed course.

Despite Friday’s rally, the Dow was down for the week by about 1.3%. The S&P was little changed, off 0.3%, while the Nasdaq was up 0.6% on the week, with Friday marking its third straight advance.

Treasury yields initially fell Friday following the September employment report, but later rebounded, pushing U.S. equities off their highs for the session.

Tech stocks rallied as risk-taking returned on Wall Street, with shares of Nvidia hitting an all-time high for the first time since May, though it eventually closed below its previous record close. CrowdStrike, Palo Alto Networks and AMD also all rose to all-time highs. Shares of AMD also rose nearly 3%.

Last month’s nonfarm payrolls report showed the U.S. economy added 29,000 jobs last month, with unemployment rising to 4.2%. The Dow Jones consensus called for jobs growth of 84,000 and for the unemployment rate to hold steady at 4.1%.

“This is the exact kind of number the market wanted from a labor standpoint,” said Phil Blancato, chief market strategist at Osaic. “Not too hot, not too cold ... not overly great, and not weakening.”

That number made traders reassess the next move for the Federal Reserve. Fed funds futures trading suggests a 77% likelihood the central bank will stand pat at this month’s meeting, according to the CME FedWatch Tool.

Saira Malik, chief investment officer at Nuveen, told CNBC’s “Squawk Box” that the report may give the market support before earnings season kicks off, which she thinks will be “very strong.”

“So, I think this could be the start of the Santa Claus rally that we’ve all been hoping for,” she said.

Oil prices pulled back, supporting equities, following a report that European nation states are considering a release of strategic fuel reserves following pressure from the Trump administration.

Investors are coming off a modestly higher session Thursday, to start off the month of October. However, the Dow and the S&P 500 were headed for weekly losses amid a global bond rout, while the Nasdaq was the only major average on pace to end the week with gains.

Alright, it's Friday and the big story of the day was US nonfarm payrolls rose by just 29,000 in September, well below the 84,000 forecast:

The U.S. economy created far fewer jobs than expected in September, pointing to a surprising soft spot in the labor market and broader economy.

Nonfarm payrolls rose a seasonally adjusted 29,000 for the month while the unemployment rate increased to 4.2%, the Bureau of Labor Statistics reported Friday. Economists surveyed by Dow Jones had been looking for job growth of 84,000 and an unemployment rate of 4.1%.

In addition to the weakness in September, the August jobs count was revised lower to reflect a gain of 133,000 while July switched from a gain to a loss as payrolls fell by 10,000. The revisions in total showed 60,000 fewer jobs than previously reported.

Market reaction was swift to the report, with traders interpreting the soft jobs numbers as good news as they likely further cemented the Federal Reserve staying put at its October meeting. 

The other related story is how September's jobs report extended a trend that illustrates consumers' widespread pain: Their pay is not keeping pace with inflation.

Average hourly earnings rose an anemic 0.1% month over month and are up 3% year over year, new Labor Department data shows. That's against a backdrop of inflation data, which showed, most recently, prices growing at a 3.4% rate as of August. 

So real wages are contracting, which never bodes well for the economy.

As far as markets, the US 10-year Treasury yield initially dropped to 5.16% on the news and then bounced back to close at 5.28%. 

Traders are not pricing in a Fed rate hike in October (no way the Fed is moving right before midterms), but December remains open for a rate hike.

It's clear that rate increases are starting to bite cyclical sectors like housing but the wildcard remains inflation. We need to see the effects of oil prices and economy over the next couple of months to see if reports come in cooler than expected.

If so, yields will tumble further but there remains one big caveat: US debt keeps exploding. 

Worse still, President Trump just soft-launched higher inflation as the new solution for rebalancing the $40 trillion US national debt.

I'm sure the bond vigilantes will love that idea!

In all seriousness, I think we are closer to an interim end when it comes to rising bond yields as inflation expectations peak, so I'd be careful here extrapolating recent action in the bond market well into the future.

Maybe that's stocks once again shrugged off rising yields this week, And once again, Big Tech  led the rest of the sectors:

But while everyone is focused on Nvidia, there were other stocks that experienced big gains this week, including Kodiak Sciences (KOD), Iovance Biotherapeutics (IOVA) and Immunitybio Inc (IBRX):

Iovance was my top biotech holding (took profits this week). I know the company extremely well and think it has a very bright future.

Alright, not much more to add this week, time to relax and enjoy my little guy.

Below, Jan Hatzius, chief economist at Goldman Sachs, joins 'Squawk on the Street' to discuss September jobs report, future activity of The Fed, and more.

And the CNBC Investment Committee reveals their portfolio strategy as yields continue to rise.

The Canadian Press reports CPP Investments selling Australian toll road assets for $4.5 billion:

Canada Pension Plan Investment Board has signed a deal to sell its Australian toll road assets to Transurban for a total of about $4.5 billion.

The deal includes CPP Investments' 10.5 per cent stake in WestConnex and its 25 per cent interest in NorthWestern Roads Group, which includes the Westlink M7 and NorthConnex roadways.

James Bryce, head of infrastructure at CPP Investments, says the sale allows the investment manager to realize value from mature assets.

CPP Investments first invested in Westlink M7 in 2010, followed by investments to develop NorthConnex in 2014. It invested in WestConnex in 2018.

The deal will see Transurban increase its interest in NorthWestern Roads Group to 75 per cent and 60.5 per cent for WestConnex.

The transaction is subject to closing conditions, including regulatory approvals.

Roushni Nair of Investing.com also reports Transurban to buy $4.5 billion of Sydney toll-road stakes from CPP Investments:

Transurban (ASX:TCL) on Thursday agreed to acquire additional stakes in two major Sydney toll-road assets from Canada Pension Plan Investment Board for about A$4.5 billion ($3.13 billion), increasing its ownership of Westlink M7, NorthConnex and WestConnex.

The transaction will see Transurban acquire CPP Investments’ 25% interest in NorthWestern Roads Group (NWRG), which comprises Westlink M7 and NorthConnex, and its 10.5% interest in WestConnex. The deal will take Transurban’s ownership to 75% of NWRG and 60.5% of Sydney Transport Partners, the WestConnex operator.

The cash consideration is A$4.5 billion, with the acquisition to be funded through new committed debt facilities and no equity raising required, according to Transurban. It said it does not expect the acquisition to affect its FY27 free cash flow or distributions.

WestConnex connects western and southwestern Sydney with the central business district, Sydney Airport and Port Botany, while Westlink M7 and NorthConnex provide passenger and freight links across Greater Sydney.

The acquisition is expected to increase Transurban’s weighted average concession life, with the relevant concessions running as long as 2060. It will not change tolls or motorists’ day-to-day experience, as the transaction changes the ownership split rather than the operation of the roads, the company said.

Transurban said Sydney remains a core market and highlighted its focus on disciplined capital allocation and maintaining investment-grade credit metrics. Management expects the acquisition to support long-term growth in free cash flow per security, with only a minor short-term impact.

The transaction remains subject to regulatory conditions, including Australian Competition and Consumer Commission approval. Completion is expected during calendar 2027, with the final valuation set as of March 31, 2027.

CPP Investments said it continues to hold significant investments across Australia spanning infrastructure, real estate, and public and private equities. Its Australian holdings include AirTrunk, BAI Communications and Pacific National, alongside major partnerships with Goodman, Lendlease and Dexus. 

Razak Musah Baba of IPE Real Assets also reports CPP Investments sells A$4.5bn Australian toll road stakes to Transurban:

Canada Pension Plan Investment Board (CPP Investments) has agreed to sell its interests in Australian toll road assets WestConnex and NorthWestern Roads Group (NWRG) to Transurban for A$4.5bn (€2.8bn).

The deal involves Transurban acquiring the Canadian pension investor’s 25% stake in NWRG and its 10.5% interest in Sydney Transport Partners (STP), the concessionaire that owns WestConnex.

Upon completion, Transurban’s ownership in NWRG, which holds the Westlink M7 and NorthConnex toll roads, will increase from 50% to 75%. Its stake in STP will rise from 50% to 60.5%.

ASX-listed toll road operator Transurban said it will initially fund the transaction using committed debt facilities, which will later be refinanced into longer-term debt.

CPP Investments first backed NWRG’s Westlink M7 in 2010 before funding the development of NorthConnex in 2014 and acquiring its stake in WestConnex in 2018.

WestConnex links western and south-western Sydney to the central business district, Sydney Airport and Port Botany, while NWRG’s Westlink M7 and NorthConnex provide key orbital freight and passenger connectivity.

Transurban CEO Michelle Jablko said: “Sydney is a core market for Transurban. WestConnex, Westlink M7 and NorthConnex provide options for Sydney motorists as they move around the city and will play an important role in supporting Sydney’s growth for decades to come.

“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. CPP Investments has been a long-term investment partner with Transurban, and we appreciate the deep and collaborative relationship.”

James Bryce, managing director, head of infrastructure at CPP Investments, said: “We are pleased with what has been achieved over our ownership period. These assets play an important role in facilitating the movement of people and goods across Greater Sydney and have generated significant long-term value for the CPP Fund.

“This transaction allows us to realise value from mature assets as we continue to focus on seeking investments that will help generate attractive long-term returns for CPP contributors and beneficiaries.”

CPP Investments issued a press release announcing the sale of Australian toll roads:

SYDNEY, Australia (October 1, 2026) — Canada Pension Plan Investment Board (CPP Investments) today announced that it has entered into an agreement with Transurban to sell its interests in WestConnex and NorthWestern Roads Group (NWRG), two leading transport infrastructure assets serving Sydney.

Under the terms of the transaction, CPP Investments has agreed to sell its 10.5% interest in WestConnex and its 25% interest in NWRG. The transaction is expected to generate gross proceeds of approximately A$4.5 billion (C$4.5 billion). Final proceeds received by CPP Investments will be subject to customary closing adjustments, taxes and costs.

WestConnex is one of Australia’s largest transport infrastructure projects, connecting western and south-western Sydney with the Central Business District, Sydney Airport and Port Botany. NWRG comprises Westlink M7 and NorthConnex, which together provide critical passenger and freight connectivity across Greater Sydney.

CPP Investments first invested in Westlink M7 in 2010, followed by investments to develop NorthConnex in 2014 and acquire WestConnex in 2018. Over its ownership period, CPP Investments has worked alongside its partners to support the expansion and operation of these transport infrastructure assets.

“We are pleased with what has been achieved over our ownership period. These assets play an important role in facilitating the movement of people and goods across Greater Sydney and have generated significant long-term value for the CPP Fund,” said James Bryce, Managing Director, Head of Infrastructure, CPP Investments. “This transaction allows us to realize value from mature assets as we continue to focus on seeking investments that will help generate attractive long-term returns for CPP contributors and beneficiaries.”

CPP Investments has been investing in Australia for more than 16 years and continues to hold significant investments across infrastructure, real estate, public and private equities, credit and investment funds.  These investments include AirTrunk, BAI Communications and Pacific National, alongside major partnerships with Goodman, Lendlease and Dexus. In addition, CPP Investments also has an active Australian-dollar term debt (Kangaroo Bond) program.

The transaction is subject to satisfaction of certain closing conditions, including relevant regulatory approvals.

About CPP Investments

Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Canada Pension Plan Fund in the best interest of the more than 22 million contributors and beneficiaries. In order to build diversified portfolios of assets, we make investments around the world in public equities, private equities, real estate, infrastructure, fixed income and alternative strategies including in partnership with funds. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At June 30, 2026, the Fund totalled C$863.6 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments.

This is a very big deal between Australia's Transurban (ASX:TCL) and CPP Investments where the former is acquiring the latter's stakes in WestConnex and NorthWestern Roads Group, making it the majority owner in both toll roads.

These were great assets for CPP Investments which first invested in Westlink M7 in 2010, followed by investments to develop NorthConnex in 2014. It invested in WestConnex in 2018.  

Why sell their stakes in these toll roads now? They're getting a very fair offer from an internationally recognized company that manages toll roads, realizing on their investment.

Recall, back in June, La Caisse announced it entered into an agreement to acquire Transurban’s remaining 50% interest in the A25 Concession, bringing its ownership from 50% to 100% and making it the sole owner of this strategic asset in Montreal.

That's how big and well-known Transurban is to Canada's largest pension funds.

On this deal, James Bryce, managing director, head of infrastructure at CPP Investments, summed it up well: 

“We are pleased with what has been achieved over our ownership period. These assets play an important role in facilitating the movement of people and goods across Greater Sydney and have generated significant long-term value for the CPP Fund.

This transaction allows us to realize value from mature assets as we continue to focus on seeking investments that will help generate attractive long-term returns for CPP contributors and beneficiaries.”

It will have $4.5 billion more in liquidity to deploy in global infrastructure assets, and it remains a significant investor in Australia: 

CPP Investments has been investing in Australia for more than 16 years and continues to hold significant investments across infrastructure, real estate, public and private equities, credit and investment funds.  These investments include AirTrunk, BAI Communications and Pacific National, alongside major partnerships with Goodman, Lendlease and Dexus. In addition, CPP Investments also has an active Australian-dollar term debt (Kangaroo Bond) program.

Will the money be repatriated back into Canadian infrastructure? Maybe, who knows? Stay tuned for major announcements on that front.

Lastly, CPP Investments also announced this week a INR 30 billion (C$441 million) investment in Prestige Hospitality Ventures Limited (PHVL), the hospitality platform of Prestige Estates Projects Limited (Prestige Group), one of India’s leading real estate developers. 

Through the investment, CPP Investments will acquire approximately 27% stake in PHVL, with the majority of the capital supporting the platform’s continued expansion.  You can read details here.

Below, John Graham, president & CEO of CPP Investments, joins BNN Bloomberg's Lindsay Biscaia live from the Canada Investment Summit. Listen carefully to John's comments, very good interview.