Canadian Pacific’s (CP) $31 billion plan to acquire the Kanas City Southern Railroad (KCS), creating a railroad that will link Canada, the US, and Mexico, cleared a major hurdle with the approval of Mexican regulators.
The CP said on Friday that the US Surface Transportation Board’s (STB) review of the deal is expected to continue into the fourth quarter of next year. The CP also noted that U.S. regulators haven’t approved any major railroad mergers since the 1990s, so it’s not clear yet whether this deal will ultimately be approved. But executives at Canadian Pacific and Kansas City Southern have said they expect the deal will be completed.
In remarks prepared for the Mexican regulators’ approval, CP CEO Keith Creel said, “This historic combination will add capacity to the US rail network, create new competitive transportation options, support North American economic growth, and deliver important benefits to customers, employees, and the environment.”
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