$312M Deal for CP to Acquire Detroit Rail Tunnel
Canadian Pacific will acquire full ownership of the Detroit River Rail Tunnel for $312-million.
OMERS, the defined benefit pension plan for municipal employees in Ontario, announced Friday they have entered into a purchase agreement whereby CP will acquire full ownership of the Detroit River Rail Tunnel from certain affiliates of OMERS.
CP previously owned a 16.5 per cent stake of the tunnel in partnership with OMERS.
"OMERS first invested in the Detroit River Tunnel Partnership in 2001. We are very proud of the value we have created with this investment for OMERS members," said Michael Ryder, Senior Managing Director and Head of Americas for OMERS Infrastructure. "Our work with CP represents a strong example of our global investment approach in action – collaborating with a trusted strategic partner as long-term owners and developers of a major international transportation link."
The 2.6-kilometre tunnel linking Windsor and Detroit will continue to be operated by CP and the acquisition is expected to reduce CP's operating costs related to movements through the tunnel.