Vinci's Major India Comeback with $2 Billion Macquarie Highway Deal
In a significant move for India's infrastructure sector, French concessions and construction giant Vinci SA is on the verge of finalizing a monumental $2 billion agreement to acquire toll road assets from Australian asset manager Macquarie Group. This strategic acquisition paves the way for Vinci's highly anticipated return to the Indian market after an absence of over a decade, according to insider sources familiar with the negotiations.
Details of the Proposed Transaction and Asset Portfolio
The deal centers on Macquarie's portfolio of nine toll road projects, which collectively span an impressive 681 kilometers across the states of Andhra Pradesh and Gujarat. These assets are currently housed under Safeway Concessions Pvt. Ltd., a subsidiary that Macquarie initially acquired in India's pioneering toll-operate-transfer (ToT) auction back in 2018 for approximately ₹9,681 crore, equivalent to $1.49 billion at the time.
Macquarie initiated the sale process for these highway assets in September 2025, setting an asking price around $1.2 billion. Over the following months, the competition narrowed down to three key contenders: Vinci Highways, the concessions unit of Vinci; Sekura Roads, backed by IPO-bound EAAA India Alternatives Ltd; and Vertis Infrastructure Trust, supported by global investment firm KKR. As reported by The Economic Times in November 2025, Vinci has now emerged as the frontrunner, with the deal potentially reaching up to $2 billion upon completion.
Vinci's Strategic Re-entry and Operational Plans
For Vinci, this acquisition represents the culmination of persistent efforts to re-establish a foothold in India's dynamic infrastructure landscape. The company had previously exited the Indian market in 2015, driven by shifts in government policies affecting the road assets industry. Earlier attempts to form a joint venture with BlackRock-backed Global Infrastructure Partners (GIP) did not materialize, making this deal with Macquarie a critical milestone.
Upon finalizing the transaction, Vinci is expected to establish a dedicated India unit to manage the newly acquired road assets. This approach is designed to circumvent the complexities associated with infrastructure investment trusts (InvITs), streamlining regulatory compliance and operational efficiency. The portfolio itself is substantial, serving an estimated 38 million commuters annually and employing over 1,700 staff members, highlighting its strategic value.
Financial Performance and Broader Market Context
Vinci Highways has demonstrated robust financial health, with its annual revenue for the fiscal year ending December 2025 increasing by 11% on a like-for-like basis to €543 million. The unit's earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at €282 million, accounting for 51.9% of revenue, while free cash flows approached €90 million, underscoring its profitability and stability.
This deal aligns with a broader trend of intense investor interest in India's road infrastructure sector. Macquarie is also exploring opportunities to divest stakes in other assets, such as those under the Canadian CDPQ-backed Maple Infrastructure Trust. Meanwhile, competitors like KKR are consolidating their road portfolios under Vertis to rival established players like Singapore-based Cube Highways, which recently acquired annuity road assets in Jammu & Kashmir in 2025.
Driving Factors and Future Outlook for Indian Roads
The allure of India's road assets is multifaceted, driven by factors such as the availability of large-scale projects that attract institutional investors, including pension and sovereign wealth funds. Macquarie's assets are particularly appealing due to their 30-year concession periods, offering long-term revenue stability.
India's road monetization initiatives continue to show a steady outlook, as highlighted by ratings agency Icra in a March 2025 report. The National Highways Authority of India (NHAI) has identified 24 assets across 12 states for potential monetization through ToT and InvIT modes, with projected proceeds ranging from ₹21,000 to ₹24,000 crore. Icra anticipates toll rate growth of 2.5-3.9% in 2025-26, coupled with traffic growth of 3-5%, leading to an estimated 7-9% increase in toll collections. The agency notes that competitive intensity remains high, with developers aggressively bidding to expand their order books.
Vinci's renewed commitment to India through this $2 billion deal not only marks a significant corporate milestone but also reflects the growing confidence in the country's infrastructure development trajectory. As the transaction nears closure in the coming weeks, pending final agreements on terms, it sets the stage for enhanced investment and operational efficiencies in India's vital road networks.
