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Canadian Pacific announced yesterday it has completed its acquisition of an 83.5% stake in the Detroit River Rail Tunnel from certain affiliates of OMERS, the benefit pension plan for Ontario municipal employees.
CP previously owned a 16.5% stake in the tunnel. The purchase price for the remaining stake is $312 million, subject to closing adjustments, CP officials said in a press release.
The Class I announced in October that it would acquire full ownership of the 1.6-mile tunnel, which links Windsor, Ontario and Detroit. The acquisition will reduce the railroad's operating costs related to traffic movements through the tunnel, CP officials have said.
OMERS first invested in the Detroit River Tunnel partnership in 2001.