The U.S. railroad regulator is giving a green light to Canadian Pacific Railway Ltd.'s takeover of Kansas City Southern. A Kansas City Southern locomotive is shown in this undated photo. THE CANADIAN PRESS/HO-Kansas City Southern MANDATORY CREDIT
WASHINGTON – The U.S. rail regulator is giving a green light to Canadian Pacific Railway Ltd.’s takeover of Kansas City Southern Railway Co.
The Surface Transportation Board’s approval today clears the final hurdle in CP’s bid to buy KCS for US$31 billion in a deal that would create the only single-line rail network linking Canada, the U.S. and Mexico.
The merged railway will be named Canadian Pacific Kansas City, with current CP chief executive Keith Creel as CEO and Calgary the global headquarters.
While it will remain the smallest of six large railways in the U.S. by revenue, it will operate nearly 33,000 kilometres of rail and employ nearly 20,000 people.
It’s been a long and bumpy route to get to this point, with CP Rail fighting a months-long battle with competitor Canadian National Railway Co. over the acquisition before CP closed its proposed deal in December 2021.
Both CN and the antitrust division of the U.S. Department of Justice have expressed concerns about the merger, warning of threats to competition.
This report by The Canadian Press was first published March 15, 2023.
Companies in this story: (TSX:CP, TSX:CNR)
