Kansas City Southern (KCS) Canadian Pacific Railway Limited (CB), The transaction reaches a value of approximately $ 31,000 million, Which will create the first single rail line connecting the United States, Mexico and Canada.
Following the transaction, KCS shares were placed in the hope of voting with Dave Starling, the former chairman and CEO of the company, who was appointed trustee.
According to the company, This guarantees that Kansas City will operate independently of Southern CP, This will remain in effect until the United States Land Transportation Board (STB) issues its decision on the joint request of the companies for rail control.
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“STB’s approval of CP’s KCS regulation will create Canada’s Pacific Kansas City Limited (CPKC), the first single railroad connecting the United States, Mexico and Canada. STB’s review of CP’s proposed control over KCS is expected to be completed in the fourth quarter of 2022. He explained.
In this sense, Canadian Pacific leader Keith Greel promised This is a historic day for the first two companies of CPKC It will become the backbone of connecting your customers with new markets.
“This will increase competition in the American rail network and provide significant environmental benefits while at the same time boosting economic growth in North America. We are pleased to reach this milestone on the path to building this truly North American railroad,” he said.
In turn, Patrick Ottensmeyer, President of KCS, noted that they were excited about the possibilities that would open up for them through this merger with CP.
According to the company, the expected benefits of the merger will not be realized until the STB approves CP’s control over KCS Railways.
Furthermore, after obtaining regulatory approval from STB, the two companies hope to achieve full integration within the next 3 years, which will open up the benefits of the merger.
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