The merger of Canadian Pacific Railway Ltd. with Kansas Metropolis Southern Railway Co. is now official.
The merger, underneath the banner of Canadian Pacific Kansas Metropolis, marks the continent’s first main railroad merger in additional than 20 years.
It combines the 2 smallest of North America’s seven Class 1 railroads, after the US rail regulator permitted the US$31 billion deal final month.
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CP Rail’s takeover of Kansas Metropolis Southern will get ultimate approval from US regulator
That inexperienced mild cleared the ultimate hurdle in CP Rail’s bid to purchase KCS and create the one rail line that stretches from Canada to the US and Mexico.
Martin Oberman, chairman of the US Floor Transportation Board, mentioned in March that the mixed firm would velocity freight journey time and encourage more durable competitors with the opposite 5, bigger railroads.
CP competitor Canadian Nationwide Railway Co. fought a protracted battle over the acquisition earlier than CP closed the deal in December 2021. CN swore KCS away from an preliminary CP provide with a US$33.6 billion proposal in Could 2021 earlier than the US regulator rejected CNs. provide in August of that yr.
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The brand new Canadian Pacific Kansas Metropolis community, stretching from Vancouver and Saint John, NB, to Houston and Mexico Metropolis, will function practically 33,000 kilometers of monitor and make use of practically 20,000 individuals.
The corporate mentioned Friday it can mark the event by operating a ceremonial ultimate spike in Kansas Metropolis, Mo., the place the 2 railroads meet. Additionally it is slated to interrupt floor on a brand new website workplace that may home its US operations heart.
CPKC’s shares within the railway will stay listed on the Toronto Inventory Trade and New York Inventory Trade underneath the ticker image CP and are anticipated to start buying and selling underneath the brand new identify on Tuesday, the corporate mentioned.
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“This unparalleled CPKC community will give our clients new choices and expanded attain into extra markets as we ship dependable rail service, take vans off public roads and lift the bar on rail security by increasing CP’s industry-leading security practices,” CPKC CEO , Keith Creel – who led CP Rail’s acquisition effort – mentioned in a launch.
Circumstances for the deal embody preserving connections between the CPKC system and different railways open on “commercially cheap phrases” and formally justifying any charge will increase above a sure degree on interline actions, in keeping with the US regulator.
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