CANADA - The CAN$43bn (US$34.5bn) Ontario Municipal Employees' Retirement System (OMERS) has taken a majority stake in the Detroit River Tunnel in a renegotiation of terms with its partner Canadian Pacific Railway (CP).
OMERS president and chief executive Michael Nobrega said: "The Detroit River Tunnel is an investment that fits into our long-term strategy of securing infrastructure assets that can generate stable and sustainable returns for OMERS plan members."
Canadian Pacific's Chief Financial Officer Kathryn McQuade added: "I am pleased with the latest development in our long-standing partnership with Borealis and its parent, the OMERS pension fund. This transaction allows us to realize value for our asset and strengthen our balance sheet while preserving our right to operate the tunnel."
Subject to regulatory approval, CP will receive C$110m from the transaction, plus C$22m based on future freight volume through the tunnel and will also retain its exclusive right to operate and maintain the Detroit River tunnel.
The tunnel transports rail traffic across the Canada-US border and is regarded as a vital link in the North American transportation infrastructure.
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