NORTH AMERICA: Canadian Pacific has entered into an agreement to acquire full ownership of the Detroit River Tunnel Partnership, which owns the 2·6 km immersed tube tunnel that has linked Windsor in Canada with Detroit in the USA since 1910.
CP currently holds a 16·5% stake the partnership, with Ontario municipal employees’ pension investor OMERS owning the remainder. Subject to regulatory approval the US$312m transaction is expected to close at the end of Q4 2020.
‘This is an important corridor for CP and by taking full ownership, we can better operate the asset to the benefit of our customers and the North American supply chain’, said CP President & CEO Keith Creel on October 16. ‘This strategic acquisition combined with our recent purchase of the Central Maine & Quebec Railway will further integrate the eastern part of our network and create value for our shareholders.’
Michael Ryder, Senior Managing Director and Head of Americas for OMERS Infrastructure, said OMERS had first invested in the partnership in 2001. ‘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.’
TD Securities Inc acted as financial adviser to OMERS Infrastructure, and Torys LLP acted as legal adviser.