(WASHINGTON) The US rail regulator gave the go-ahead Wednesday for Canadian Pacific (CP) to acquire Kansas City Southern (KCS).
The Approbation of the Surface Transportation Board était le dernier obstacle dans l’offre du CP d’acheter KCS for 31 milliards US dans the cadre d’une transaction that created the only success of Ferroviaire in the unique ligne reliant of Canada, its Universities and Mexico.
The combined railroad will be known as Canadian Pacific Kansas City, with current CP CEO Keith Creel as president and CEO. Calgary will house the international headquarters.
While it would remain the smallest of the six major railroads in the United States in terms of revenue, it would operate on approximately 33,000 miles of track and employ approximately 20,000 people.
It’s been a long and bumpy road to get here, as CP fought a months-long battle with rival Canadian National (CN) over a takeover before CP finalized its proposed deal in December 2021.
CN and the US Justice Department’s antitrust division have expressed concerns about the merger, warning of threats to competition.
Companies in this submission: TSX: CP, TSX: CNR
“Food trailblazer. Passionate troublemaker. Coffee fanatic. General analyst. Certified creator. Lifelong music expert. Alcohol specialist.”