CP Completes Purchase of Detroit Tunnel

Canadian Pacific has completed its transaction to buy a majority ownership stake in the Detroit River Tunnel.

The carrier said this week it bought the shares of an Ontario municipal employees pension fund, which constituted 83.5 percent of the tunnel ownership.

CP previously had a 16.5 percent ownership share in the 1.6-mile tunnel, which was built by the Michigan Central and links Detroit with Windsor, Ontario.

In a news release, CP said the purchase price of the Ontario pension fund shares was $312 million, subject to closing adjustments.

CP said the acquisition will reduce its operating costs of traffic movements through the tunnel.

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