Rail News

DATE

September 14 , 2021


Kansas City Southern to accept CP Rail offer

The Star 
14 September 2021 (Dallas, US)

Kansas City Southern (KCS) said it is backing out of a merger agreement with Canadian National Railway Co and plans to accept a competing offer from Canadian Pacific Railway Ltd (CP Rail), the latest step in the fight over which railroad would become the first to operate in Canada, the United States and Mexico.

CP Rail’s proposal was declared superior even though at about US$27bil (RM112bil), it’s lower than Canadian National’s US$30bil (RM124bil) offer, which began to unravel last month amid questions over whether it would win regulatory approval.

Canadian National has about five business days to negotiate terms that could change the US railroad’s decision, KCS said in a statement.

Canadian National said it is continuing to evaluate its options and “will make carefully considered decisions in the interests of all Canadian National shareholders and stakeholders and in line with our strategic priorities.”

The months-long saga has now come full circle, after CP Rail and KCS initially agreed to a deal in March, only for Canadian National to swoop in with a higher offer.

Source
https://www.thestar.com.my/business/business-news/2021/09/14/kansas-city-southern-to-accept-cp-rail-offer

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