By Dave Sebastian
Canadian Pacific Railway Ltd. said it has agreed to buy for $312 million the Detroit River Rail Tunnel from affiliates of OMERS, the defined benefit pension plan for municipal employees in Ontario.
CP had owned a 16.5% stake in the tunnel. It will continue to operate the 2.6 kilometer tunnel linking Windsor and Detroit, CP said.
CP said its acquisition would reduce its operating costs related to movement through the tunnel.
The transaction is expected to close in the fourth quarter.
Write to Dave Sebastian at firstname.lastname@example.org
(END) Dow Jones Newswires