Canadian Pacific Railway has agreed to acquire Kansas City Southern in a $29 billion stock and cash transaction.
The merger will create a single integrated rail system that connects premier ports in the U.S. Gulf, Atlantic and Pacific coasts with key markets in Mexico and Canada. Combined, the two railroads will create the first rail network connecting the United States, Mexico and Canada.
The combined company will operate 20,000 miles of rail, and is expected to generate some $8.7 billion in total revenue
“This will create the first U.S.-Mexico-Canada railroad, bringing together two railroads that have been keenly focused on providing quality service to their customers to unlock the full potential of their networks,” said Keith Creel, president and CEO of Canadian Pacific. “CP and KCS have been the two best performing Class 1 railroads for the past three years on a revenue growth basis.”
The deal awaits approval from the Surface Transportation Bo