CP Rail, Kansas City Southern Rail merger now official
The merger of Canadian Pacific Railway Ltd. with Kansas City Southern Railway Co. is now official.
The fusion, underneath the banner of Canadian Pacific Kansas City, marks the continent’s first main railroad rail merger in additional than 20 years.
It combines the 2 smallest of North America’s seven Class 1 railroads, after the U.S. rail regulator authorized the US$31-billion deal final month.
That inexperienced mild cleared the ultimate hurdle in CP Rail’s bid to purchase KCS and create the one railway stretching from Canada by way of to the U.S. and Mexico.
U.S. Surface Transportation Board chair Martin Oberman stated in March the mixed firm will pace up freight journey time and encourage tighter competitors with the opposite 5, bigger railways.
CP competitor Canadian National Railway Co. had fought an extended battle over the acquisition earlier than CP sealed the deal in December 2021. CN had wooed KCS away from an preliminary CP provide with a US$33.6-billion proposal in May 2021 earlier than the U.S. regulator rejected CN’s bid in August of that yr.
Stretching from Vancouver and Saint John, N.B., to Houston and Mexico City, the brand new Canadian Pacific Kansas City community will function nearly 33,000 kilometres of rail and make use of practically 20,000 individuals.
The firm stated Friday it’s going to mark the event by driving a ceremonial remaining spike in Kansas City, Mo., the place the 2 railways meet. It can also be slated to interrupt floor on a brand new yard workplace that can host its U.S. operations centre.
CPKC’s shares within the railway will stay listed on the Toronto Stock Exchange and New York Stock Exchange underneath the ticker image CP and are anticipated to start buying and selling underneath the brand new moniker on Tuesday, the corporate stated.
“This unmatched CPKC network will give our customers new options and expanded reach to more markets as we provide reliable rail service, take trucks off public roads and raise the bar on rail safety by expanding CP’s industry-leading safety practices,” CPKC chief government Keith Creel – who led CP Rail’s acquisition effort – stated in a launch.
Conditions on the deal embrace conserving connection factors between the CPKC system and different railways open on “commercially reasonable terms” and formally justifying any fee will increase over a sure stage on interline actions, in accordance with the U.S. regulator.
This report by The Canadian Press was first revealed April 14, 2023.
