Canadian Pacific gets green light to acquire Kansas City Southern
The purchase of Canadian Pacific will allow the creation of a single-line rail network linking Canada, the United States and Mexico.
The American rail regulator has given the green light , Wednesday, to the takeover of Kansas City Southern (KCS) by the Canadian Pacific (CP).
Surface Transportation Board approval was the final hurdle in CP's bid to buy KCS for US$31 billion in a deal that would create the world's only single-line rail network connecting Canada, the United States and Mexico.
The merged railroad will be named Canadian Pacific Kansas City, with the current CEO of the CP, Keith Creel, as President and CEO. The City of Calgary will house the international headquarters.
While it will remain the smallest of the six major railroads in the United States by revenue, it will operate nearly 33,000 kilometers of track and will employ nearly 20,000 people.
It's been a long and bumpy road to get here, with CP fighting a months-long battle with its competitor, the Canadian National (CN), regarding the acquisition before CP completes its proposed deal in December 2021.
CN and the U.S. Department of Justice Antitrust Division expressed concerns about the merger, warning of threats to competition.
