Ferrovial (FER) has agreed to acquire up to a 5.06% stake in Canadian highway 407 ETR from AtkinsRealis for about 2.09 billion Canadian dollars ($1.45 billion).

The company said the deal is structured in two tranches, with 3.30% to be acquired at closing and the remaining 1.76% deferred for up to 18 months after the close through a put-and-call-option agreement, with the strike price adjusted on an mutually agreed formula.

Ferrovial said that under separate deals AtkinsRealis will sell its remaining 1.7% stake in 108-kilometer Toronto area tollway to Canada Pension Plan Investment Board while Public Sector Pension Investment Board has agreed to acquire a 7.51% interest in 407 ETR from CPP.

The transactions are expected to close in Q2, subject to closing of CPP's sale to PSP Investments, Ferrovial said.