Regulatory Due Diligence of an International Airport Operator (Aeroports de Paris)

By Dominik Huebler, Lorenz Wieshammer, Prof. Dr. Marc Ivaldi, Dr. Tuba Toru Delabasi et al.

The Situation

Groupe Aeroports de Paris (ADP) is an international airport operator that operates Paris’ main airports as well as various other airports around the world, including in India and Turkey. Alongside its operation of the three main Paris airports, the company operates interests in a network of 25 airports worldwide, which handled 160 million passengers in 2021. Canada Pension Plan Investment Board (CPP Investments), a professional investment management organization that manages its Fund in the best interest of the 21 million contributors and beneficiaries of the Canada Pension Plan, was looking to purchase a stake in ADP.  

NERA's Role

CPP Investments commissioned a NERA team led by Associate Director Dominik Huebler and Senior Consultant Lorenz Wieshammer—along with Affiliated Academic Prof. Dr. Marc Ivaldi, Consultant Dr. Tuba Delibasi, and Analysts Alisa Smaghina, Katharina Filip, and Daniel Neuhold—to conduct regulatory due diligence of the French, Indian, and Turkish regulatory frameworks governing ADP’s assets. The NERA team analyzed the regulatory frameworks with a special focus on the impact of the COVID-19 pandemic to provide CPP Investments with sound regulatory economic forecasts for its business plan and valuation pointing out risks and opportunities under the various regulatory frameworks and their potential evolution over time.

The Result

On 16 November 2022, CPP Investments reached an agreement with ADP’s existing shareholders to acquire an additional stake in ADP of approximately 1.59% that will take its holdings to approximately 5.64% upon settlement.

NERA experts regularly advise on transactions in the transport and other infrastructure sectors, providing regulatory due diligence advice on airports, toll roads, rail, and other infrastructure.