- Genesee & Wyoming (GWR) agrees to buy the western portion of the Dakota, Minnesota and Eastern railroad from Canadian Pacific (CP) for $210M.
- CP says the sale to result in a $240M Q4 writedown and will not have a material effect on future earnings; GWR expects the deal will generate annual revenues of ~$65M and be immediately accretive to book and cash earnings in 2014.
- CP purchased the DM&E in 2007 for nearly $1.5B; it had envisioned building an extension to compete with BNSF and Union Pacific, the only two railroads that serve the Powder River coal basin.
Canadian Pacific to sell DM&E west end to Genesee & Wyoming for $210M
Jan 2 2014, 18:25 ET