- Canadian Pacific Railway Ltd. has finalised its purchase of Kansas City Southern.
- Paving the path for North America’s only railway that extends across all three nations.
Canadian Pacific completes the purchase deal with Kanas City Southern:
The deal, which was completed on Tuesday, puts the shares of the American railroad in a voting faith while the United States Surface Transportation Board examines the agreement.
The faith permits KCS shareholders to be spent while providing the railroad runs alone until the U.S. regulator gives its conclusion on the agreement valued at US$31 billion, including the presumption of US$3.8 billion of deficit.
With the fulfilment of the purchase, KCS shareholders will accept 2.884 CP shares and US$90 in cash per KCS common share owned and US$37.50 in cash per KCS selected share held.
CP and KCS stated in a release they hope the study by the U.S. transportation board to cover up in the fourth quarter of the following year. The anticipated advantages from the railroad to be understood as Canadian Pacific Kansas City Ltd. (CPKC)will not be recognised till the U.S. regulator supports the agreement, the firms stated.
CP chief executive Keith Creel called the landmark a “historic day” for the two railroads, which both have histories extending back to the 19th century.
“CPKC will become the backbone connecting our customers to new markets, enhancing competition in the U.S. rail network, and driving economic growth across North America while delivering significant environmental benefits,” he stated in a release. Source – cbc.ca
“We are excited for the possibilities that will open to us through this combination with CP and we look forward to our next chapter,” stated KCS chief executive Patrick J. Ottensmeyer. Source – cbc.ca
An overwhelming preponderance of shareholders at both CP and KCS supported the trade in certain meetings last week, following a green light from Mexican regulators in November.