The $27 billion USD deal means Canadian Pacific now has track extending from Vancouver to Veracruz, Mexico.
The U.S. has approved Canadian Pacific’s acquisition of Kansas City Southern.
As a result, Canadian Pacific will be the only rail operator with track in Canada, the U.S., and Mexico.
As noted by BNN Bloomberg, the acquisition was completed in 2021, but final approval by the U.S. Surface Transportation Board was a long process:
“The decision comes despite heightened scrutiny of the U.S. rail industry in the wake of a series of derailments, including a toxic chemical spill in Ohio, and tense relations between company management and labor groups. Canadian Pacific’s financial transaction to acquire Kansas City Southern’s shares was wrapped up in December 2021, but the railways were required to continue operating separately until the board gave final approval of the deal.”
Despite Canadian Pacific being the only rail operator with track in all three of North American’s largest countries, it remains the smallest among the six largest railroads in Canada/the U.S.
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