Stamford Advocate

Canadian Pacific’s acquisitio­n of KCS railroad back on track

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The path is now clear for Canadian Pacific’s $31 billion acquisitio­n of Kansas City Southern railroad to move forward after Canadian National dropped out of the bidding war Wednesday. The deal could still face tough scrutiny from regulators at the federal Surface Transporta­tion Board, which hasn’t approved any major railroad mergers since the 1990s, but KCS shareholde­rs will be set to get paid once shareholde­rs of both companies and Mexican regulators approve regardless of what the STB ultimately decides. Canadian Pacific triumphed in the bidding war even though it offered less federal regulators rejected part of CN’s plan. Canadian National will receive $1.4 billion in breakup fees for its trouble.

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