Railroad execs hope CP-KCS merger could be done by late 2022
Canadian Pacific hopes to complete its $31 billion acquisition of Kansas City Southern railroad before the end of next year.
Shareholders of both companies are likely to vote on the deal sometime in December, and then Mexican and American regulators will have to sign off on the combination before the two railroads can merge.
Officials from both railroads provided an update on the timing of the deal Thursday in a call with investors a day after announcing they had finalized their merger agreement.
Canadian Pacific CEO Keith Creel said the Mexican review of the deal is expected to take between two and four months. After that is complete and if shareholders of both railroads approve, then a voting trust will be created to acquire Kansas City Southern and own it during the U.S. Surface Transportation Board’s full review.