Macquarie Infrastructure & Real Assets (MIRA) and PGGM have agreed to assume full ownership of Genesee & Wyoming Australia, in which they currently own a 49 percent stake.
Brookfield Infrastructure and GIC are in the process of acquiring the Australian business’s parent company, Genesee & Wyoming (G&W), in an $8.4 billion deal scheduled to close by early 2020.
The companies decided to divest the remaining 51 percent stake in the subsidiary to MIRA and PGGM for a price that has not been disclosed.
G&W owns a portfolio of 120 short-line railroads, predominantly in North America, with operations in Europe and Australia. Through its subsidiaries worldwide, the business provides essential transportation infrastructure services over more than 16,155 miles of track, providing access to its well-diversified customer base.
PGGM will provide the lion’s share of funding for the deal, increasing its stake, while funds managed by MIRA will own the remainder of the stake, according to Railway Gazette.
The transaction is subject to the Brookfield and GIC acquisition, in addition to customary closing conditions including regulatory approvals.
