Rail News

DATE

September 03 , 2021


CANADA STOCKS-Rail merger news lifts industrial stocks to record high

Reuters 
SEPTEMBER 1, 2021 (Canada)

(Adds comments; updates prices)

Sept 1 (Reuters) - Canada’s main index rose on Wednesday as railroad stocks jumped after regulators halted Canadian National’s deal to buy U.S. peer Kansas City Southern, potentially paving the way for rival Canadian Pacific to usurp the deal.

At 10:39 a.m. ET (1439 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 0.57% at 20,699.87.

The industrials index rose 2.1% to a record high, as both Canadian Pacific Railway Ltd and Canadian National Railway Co jumped about 4% following the rejection of a voting trust structure that would have allowed the latter to buy Kansas City for $29 billion.

The two Canadian companies are competing to buy the U.S. railroad and Canadian Pacific initially fell 5% on Tuesday as investors priced in a greater likelihood of it having to make good on its own $25 billion offer for Kansas City.

Source
https://www.reuters.com/article/canada-stocks/canada-stocks-rail-merger-news-lifts-industrial-stocks-to-record-high-idUSL4N2Q332C

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