Abertis and an affiliate of global institutional investor GIC (GIC), an investment firm that manages Singapore’s foreign reserves, have reached an agreement with Goldman Sachs Infrastructure Partners (GSIP) and its affiliates to acquire the funds’ 70% stake in Red de Carreteras de Occidente (RCO), one of the largest toll road operators in Mexico. The deal will be carried out through a consortium formed by Abertis (which will control the company) and GIC. Currently, the remaining 30% of RCO is held by local investors and pension fund managers (AFORES).

Abertis will acquire from GSIP a 50.1% stake for an amount of EUR1.5 billion (US$1.66 billion), subject to regulatory approvals and other customary conditions for this type of transaction. Total Enterprise Value (EV) of RCO is EUR5 billion (US$5.5 billion). Abertis will finance the transaction with available cash and existing committed bank facilities. The closing of the transaction is expected during the first half of 2020 through a tender offer.

After the closing, RCO will be fully consolidated in the Abertis Group's accounts. RCO has a 100% stake in five concessionaires that manage 876 km through 8 toll roads. RCO is one of the largest toll road networks in Mexico constituting the main transportation route in the central-western region and connecting the main industrial corridor of El Bajío with the two largest cities (Mexico City and Guadalajara).

RCO is one of the main pure-play toll road operators in Mexico and controls 100% of five concessionaires - four federal and one state - that manage a total of 8 roads in the country.

• FARAC I: Manages five toll roads of 663 kilometers. The roads represent the main connection between the two largest cities in the country: Mexico City and Guadalajara, crossing the states of Jalisco, Michoacán, Guanajuato, and Aguascalientes.
• COVIQSA and CONIPSA: Manages two shadow toll roads of 93 and 74 kilometers, respectively. These roads cross three states in the Bajío industrial corridor: Querétaro, Guanajuato, and Michoacán.
• COTESA: Manages the 31-kilometer Tepic-San Blas toll road, which connects the State of Nayarit and the Pacific coast.
• AUTOVIM: Manages a greenfield project for the construction of a 14-kilometer road that will connect the city of Zamora with FARAC I, in Michoacán. It is scheduled to enter service in 2021.