CP Rail’s takeover of KCS gains final regulatory approval

WASHINGTON –

The U.S. rail regulator is giving a inexperienced mild to Canadian Pacific Railway Ltd.’s takeover of Kansas City Southern Railway Co.

The Surface Transportation Board’s approval at this time clears the ultimate hurdle in CP’s bid to purchase KCS for US$31 billion in a deal that will create the one single-line rail community linking Canada, the U.S. and Mexico.

The merged railway will likely be named Canadian Pacific Kansas City, with present CP chief govt Keith Creel as CEO and Calgary the worldwide headquarters.

While it should stay the smallest of six massive railways within the U.S. by income, it should function almost 33,000 kilometres of rail and make use of almost 20,000 folks.

It’s been a protracted and bumpy path to get so far, with CP Rail preventing a months-long battle with competitor Canadian National Railway Co. over the acquisition earlier than CP closed its proposed deal in December 2021.

Both CN and the antitrust division of the U.S. Department of Justice have expressed issues in regards to the merger, warning of threats to competitors.

This report by The Canadian Press was first printed March 15, 2023.