CN drops bid for Kansas City Southern; CP to acquire U.S. railway in US$31B deal
CTV
Canadian Pacific Railway Ltd. says it has reached a deal to acquire KCS for approximately US$31 billion, after Canadian National Railway Co. dropped its rival takeover offer for the U.S. railway.
Canadian Pacific Railway Ltd. said Wednesday it has reached a deal to acquire KCS for approximately US$31 billion, after Canadian National Railway Co. dropped its rival takeover offer for the U.S. railway.
The news came after KCS on Sunday ruled the bid by CP Rail was a superior proposal to its deal with CN.
CP Rail said the merger will create the first U.S.-Mexico-Canada rail network.
"(The merger) will deliver dramatically expanded market reach for CP and KCS customers, provide new competitive transportation options, and support North American economic growth," CP chief executive Keith Creel said in a statement.
