CP completes acquisition of Detroit River Rail Tunnel

Rhea-AI Summary

Canadian Pacific (TSX: CP) announced the completion of its acquisition of an 83.5% stake in the Detroit River Rail Tunnel from OMERS affiliates for approximately US$312 million. Previously, CP held a 16.5% stake in the tunnel. This strategic purchase increases CP's ownership and control over this critical infrastructure, enhancing its competitive rail service capabilities across North America.

Positive

• Acquisition of 83.5% stake enhances control over vital rail infrastructure.
• Strategic purchase expected to improve competitive positioning in North America.

Negative

• None.

CALGARY, Dec. 22, 2020 /PRNewswire/ - Canadian Pacific (TSX: CP) (NYSE: CP) announced today it has completed its previously announced agreement to purchase an 83.5 percent stake in the Detroit River Rail Tunnel from certain affiliates of OMERS, the defined benefit pension plan for municipal employees in the province of Ontario. CP previously owned a 16.5 percent stake of the tunnel in partnership with OMERS. The purchase price for the transaction is approximately US$312 million, subject to customary closing adjustments.

About Canadian Pacific
Canadian Pacific is a transcontinental railway in Canada and the United States with direct links to major ports on the west and east coasts. CP provides North American customers a competitive rail service with access to key markets in every corner of the globe. CP is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise. Visit cpr.ca to see the rail advantages of CP. CP-IR

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SOURCE Canadian Pacific

FAQ

What is the value of Canadian Pacific's acquisition of the Detroit River Rail Tunnel?

The acquisition cost is approximately US$312 million.

What percentage of the Detroit River Rail Tunnel does Canadian Pacific now own?

Canadian Pacific now owns 83.5% of the Detroit River Rail Tunnel.

Why is the acquisition of the Detroit River Rail Tunnel significant for Canadian Pacific?

The acquisition enhances CP's control over critical rail infrastructure, improving its competitive positioning.

When was the acquisition of the Detroit River Rail Tunnel announced?

The acquisition was announced on December 22, 2020.