(Reuters distributed the following article on June 2.)
MONTREAL — Canadian National Railway Co. said on Monday it had scrapped its plan to acquire ONRail, a province-owned railway serving Northern Ontario, because of job guarantees demanded by the Ontario government.
CN, which began negotiations last October, had pledged to invest C$30 million ($22 million) to improve ONRail if the government agreed to a sale.
“We believe this failed privatization is a missed opportunity for rail freight shippers and passengers of Northeastern Ontario, and for Ontario taxpayers who heavily subsidize ONRail operations,” CN Executive Vice-president Claude Mongeau said in release.
CN stock was up C$1.51 to C$70.45 a share on the Toronto Stock Exchange at midday on Monday. The stock has risen 8 percent since the start of the year, outperforming the overall S&P/TSX index, which gained 5 percent.