Sumary of The battle is over: CN Rail drops takeover offer for Kansas City Southern:
- A protracted battle between rival Canadian railways for the acquisition of Kansas City Southern is over, with Canadian Pacific Railway Ltd. coming out on top.
- CP Rail 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.
- CP Rail bid superior to CN Rail deal, Kansas City Southern board rules “(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.
- Story continues below CP Rail has said customers will not experience a reduction in railroad choice as a result of the transaction and has pledged to keeping all existing freight rail gateways open on “commercially reasonable terms.
- The combined entity will be named Canadian Pacific Kansas City (CPKC).
- Calgary — currently the headquarters of CP Rail — will be the global headquarters of CPKC, and Kansas City, Mo.
- 2:52 Market and Business Report: August 11, 2021 Market and Business Report: August 11, 2021 Kansas City Southern CEO Patrick Ottensmeyer said the combined railway will provide the best value for the transportation dollar.
- 9 and KCS’ closing price on March 19. U.S. regulator denies CN Rail’s use of trust in deal to buy Kanas City Southern Following the closing into a voting trust, common shareholders of KCS will receive 2.884 CP Rail shares and US$90 in cash for each KCS common share held.