WASHINGTON — The Surface Transportation Board has approved Fortress Investment Group’s acquisition of the Wheeling & Lake Erie Railway and Akron Barberton Cluster Railway. The acquisition will be effective Dec. 26.
In a press release today (Nov. 26), the board notes that the two properties will join six Class III railroads already in the Fortress portfolio (through rail company Transtar), that one customer currently served by both the W&LE and Transtar’s Union Railroad supported the transaction, and that there were no filings in opposition to the purchase.
The W&LE operates approximately 982 miles in Ohio, Pennsylvania, West Virginia, and Maryland, while the ABC operates approximately 84 miles in the Akron, Ohio, area. Both were previously owned by The Wheeling Corp.
In granting the Fortress request for an exemption from prior-approval requirements of the transaction, the board agrees with a Fortress contention that the move will enhance the two railroads’ access to capital and therefore aid in strategic investment decisions and growth opportunities, and says there will be no significant impacts on competition. The full decision is available here.
Fortress is also a major investor in passenger rail operator Brightline.
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