CP lays out timeline for KCS merger; shareholders to vote in December

Canadian Pacific Railway Ltd.'s acquisition of Kansas City Southern could be complete by next fall, the Calgary-based railway said Thursday.

"That's what best case looks like, and that's what we're going to work our tails off to be able to achieve," CP chief executive Keith Creel told analysts in a conference call, adding CP plans to submit its merger application to the U.S. Surface Transportation Board next month. The review process could take 10 months or more, Creel said.

"We know it's going to be a robust review. We anticipate that. We're going to work in support of that," he said. "But we hope that and believe that it can be concluded in a reasonable time frame and bring us to a pro forma company by October, November of 2022."

CP Rail announced Wednesday it has reached a deal to acquire KCS for approximately US$31 billion including debt. The announcement came the same day Canadian National Railway Co. said it is dropping its rival takeover bid for KCS.

CP and KCS will hold shareholder votes in December, Creel said. The merger, which CP says will create the first Canada-U.S.-Mexico rail network, also needs to be approved by Mexican regulators.