The Transurban-led consortium, Sydney Transport Partners (STP), has acquired a majority stake in Sydney’s new toll road for AUD9.3bn (€5.8bn) from the NSW state government.

STP will own 51% of WestConnex, the largest road infrastructure project currently underway in Australia, under a 42-year concession. When completed in 2020, WestConnex will have cost AUD16.8bn.

The NSW Government said the remaining 49% would be held in its newly-created NSW sovereign wealth fund, the Generation Fund.

Transurban said it will own 50% of STP. AustralianSuper and CPPIB will each hold 20.5% and Tawreed Investments, a subsidiary of Abu Dhabi Investment Authority, 9%.

To finance the deal, Transurban is to raise AUD4.2bn through a fully underwritten entitlement and placement offer.

Transurban’s CEO, Scott Charlton, said: “The placement of AUD600m to our partners, AustralianSuper and Tawreed, demonstrates their support for Transurban and the WestConnex acquisition.”

Earlier this week, the Australian Competition & Consumer Commission cleared the Transurban-led consortium to be considered for the acquisition, saying it would not oppose STP’s bid.

The acquisition is now subject to Foreign Investment Review Board approval, with financial close expected in late September.

As previously reported, the NSW Government had also received a bid from IFM Investors, which is backed by the Dutch pension fund APG, and Canadian pension fund OMERS.