Transurban Group's (ASX:TCL) acquisition of additional stakes in key Sydney roads is expected to be beneficial over the longer term, especially since the price paid is broadly in-line with 2027 valuations, Jefferies said in a Thursday note.

In a same-day filing, Transurban said it agreed to acquire Canada Pension Plan Investment Board's (CPPIB) stakes in NorthWestern Roads Group (NWRG) and Sydney Transport Partners (STP) for AU$4.5 billion in cash. The deal will lift the company's ownership to 75% of NWRG, which owns Westlink M7 and NorthConnex, and nearly 61% of STP, which owns WestConnex.

"Importantly, WestConnex remains a strong growth portfolio, and is expected to benefit from increased traffic post completion of the Western Harbour Tunnel," Jefferies said.

It added, however, that the acquisition is also expected to be a "small drag to distribution growth" in fiscal 2028 and probably in fiscal 2029 too. The investment firm also expects the acquisition to be dilutive to free cash flow over the next few years.

For CPPIB, the sale brings to an end a 16-year direct ownership of Australian toll road assets, and it likely sees more attractive options for the proceeds elsewhere, the equity research firm said.

Jefferies maintained a hold rating on Transurban with a price target of AU$13.11.

The toll-road operator's shares gained about 1% in recent Friday trade.