Canadian Pacific completes purchase of DM&E Railway
SIOUX FALLS, S.D. (AP) - Canadian Pacific Railway has officially taken over the operations of Dakota, Minnesota & Eastern Railroad.
Canadian Pacific purchased the DM&E in a $1.48 billion deal that was finalized by the parties in September 2007. Approval of the sale by the federal Surface Transportation Board was subject to a 30-day appeal period, which ended Thursday without challenge.
Fred Green, the president and CEO of Canadian Pacific, reaffirmed CP's belief that the purchase of DM&E and subsidiary Iowa, Chicago & Eastern Railroad will add to the company's earnings.
"The DM&E's speed to market, operational efficiency and organic growth reinforces our confidence in the strength and potency of this acquisition," Green said in a statement. "The two networks belong together, the union of which will open up enhanced opportunities for shippers."
Canadian Pacific has not said whether it will continue with a DM&E plan to lay new track to Wyoming's Powder River Basin and begin hauling coal east.