Canadian Pacific acquisition of Detroit River Rail Tunnel

On Dec. 22, 2020, Canadian Pacific (“CP”) announced that it completed its previously announced agreement to purchase an 83.5 per cent stake in the Detroit River Rail Tunnel (“DRTP”) from certain affiliates of OMERS. CP previously owned a 16.5 per cent stake of the tunnel in partnership with OMERS. The purchase price for the transaction is approximately US$312 million, subject to customary closing adjustments.

DRTP is the owner of the Detroit River Rail Tunnel, a 2.6-kilometre tunnel which passes under the Detroit River between Windsor, Ontario and Detroit, Michigan.

CP is a transcontinental railway in Canada and the U.S. with direct links to major ports on the west and east coasts.

OMERS Infrastructure manages investments globally in infrastructure on behalf of OMERS, the defined benefit pension plan for municipal employees in the Province of Ontario, Canada. OMERS’ diversified portfolio of large-scale infrastructure assets aims to exhibit stability and strong cash flows, in sectors including energy, transportation and government-regulated services.

Torys LLP represented OMERS Infrastructure with a team that included
Konata Lake,
Na Fan,
Sarah Strong (corporate/M&A),
Dany Assaf,
Christopher Caparelli,
Zee Derwa (competition),
Andy Gibbons (real estate),
Peter Keenan,
Chris Saki (tax).

Blake, Cassels & Graydon LLP represented Canadian Pacific with a team that included
Anne Drost,
Graham Smith,
Robert Frazer,
Mark Mohamed,
Conor Gordon (corporate/M&A),
Julie Soloway (competition),
Jeffrey Shafer,
Zvi Halpern-Shavim (tax),
John Hutmacher (real estate),
Charles Kazaz (environmental).

See the news release on Canada Newswire here.