Vinci to Acquire Lima Toll Road in Peru in $1.7 Billion Deal

  • Deal with Brazil’s Invepar expected to close in second half
  • Plan is to extend route which is under concession until 2049

Vinci SA plans to acquire a toll road concession in Lima in a deal valued at about 1.5 billion euros ($1.7 billion) as Europe’s largest construction company bets clogged routes in the Peruvian capital will generate traffic demand.

The French builder will take over concession-holder Lamsac and PEX, which operates the associated electronic toll collection system, from Brazilian owner Investimentos & Participacoes em Infraestrutura SA, the Rueil-Malmaison, France-based company said in a statement on Monday. The deal is expected to close in the second half of this year.

The purchase comes as part of Vinci’s strategy to expand in Latin America including in energy services in Brazil and real-estate development in Colombia. Faced with a sluggish French economy, Vinci’s moves into emerging markets are aimed at capturing spending on infrastructure like highways and airports. An overall rise in revenue from roads helped increase first-half profit by 12 percent, with Chief Executive Officer Xavier Huillard saying last month concession work performed better than expected.

Vinci shares rose 0.4 percent to 67.30 euros at 10:53 am in Paris, valuing the company at 40 billion euros. The stock has gained 14 percent since the start of the year.

Traffic Increase

In Lima, the Lamsac concession expires in 2049 for a 25-kilometer (15-mile) toll road to connect routes into the city as well as to the international airport. Traffic averaged 134,000 vehicles a day last year, Vinci said.

“Traffic will further increase following the completion of a new section under construction” the company said. The planned extension will be nine kilometers along the Rimac River, according to Lamsac.

Last year, Vinci won the concession for Chile’s international airport in Santiago, including the building of a new terminal. The company also purchased a stake in Colombian construction company Constructora Conconcreto and its energy unit acquired electric-equipment maker Orteng Engenharia e Sistemas SA in Brazil.

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