A name that will remain and the main office that will continue to be established in downtown Montreal: this is confirmed by the President and CEO of the Canadian National Railways (CN). If Acquired American Kansas City Southern (KCS)) Embodied.
Jean-Jacques Roest was questioned about these aspects of the deal while attending an investor conference on Wednesday with President and CEO of American Railroad Patrick Otttenmayr.
It was the CEO’s first joint exit since last Friday, when KCS formally accepted CN’s proposal to award it $ 33.7 billion in favor of a previously announced $ 25.2 billion bid. With Canadian Pacific (CP) – the other major railroad in Canada.
“The name of the company will be (the National Railways Company) and Montreal will be the global headquarters for the company,” Roest said when asked. As mentioned, Kansas City will be the headquarters for our operations in the United States. ”
Hoping to assuage US regulatory authorities’ concerns, CN has also pledged to cede a section of the approximately 113 kilometers operated by KCS between New Orleans and Baton Rouge. This is where the two carrier networks overlap.
This pledge is part of a petition filed jointly by the CN and KCS with the Surface Transportation Board (STB), head of US rail merger operations, for permission to create a trust with voting power that will be used to conclude the agreement.
The trust will hold KCS shares while reviewing the transaction. This would allow US Railways shareholders to receive a full matching payment without having to wait for STB approval, which could last until the end of 2022.
The deal would allow CN to be the first North American railroad company to operate a network connecting Canada, the United States and Mexico.
“We believe our commitment […] You have to make STB agree to our vote confidence, “said the president of the Montreal Railroad Corporation.
Mm. Ruest and Ottensmeyer were not prepared to go ahead with their plans if STB rejected their vote confidence request. The CP has already shown confidence that US regulators will oppose the CNS takeover of KCS. If this scenario materializes, the Calgary-based company would like to negotiate with KCS again.