Canadian Pacific Railway train through Banff National Park, Canada. - stock photo. Credit: Natapong Supalertsophon / Getty Images
Canadian Pacific Railway Ltd. has agreed to buy Kansas City Southern for $25 billion in cash and stock, creating the first rail network linking the United States, Mexico, and Canada.
The deal values Kansas City Southern at $275 a share, based on Friday’s stock prices. Kansas City Southern shares closed Friday at $224 on the New York Stock Exchange.
The acquisition would need the approval of a U.S. regulator, the Surface Transportation Board. The companies said they expect the process to take until mid-2022.
The combined company would operate about 20,000 miles of railway, employ 20,000 people and generate annual revenue of about $8.7 billion. In a joint statement, the railroads said their merger is “expected to create jobs across the combined network.’’
They also said the deal would allow their customers seamless transportation throughout much of the U.S., Canada and Mexico.
The three countries last year entered into a revamped regional trade pact, negotiated by President Donald Trump, that is expected to encourage trade and investment across North America. Canadian Pacific CEO Keith Creel said that the so-called U.S.-Mexico-Canada Agreement “makes the efficient integration of the continent’s supply chains more important than ever before.’’
Joe Pompliano, author of the Huddle Up newsletter, breaks down the biggest moments from Super Bowl LVIII, from potentially record-breaking viewership to Taylor Swift’s highly anticipated appearance.
David Wright, President and owner of Wright Financial Group, shares his thoughts on why the Federal Reserve seems hesitant to cut rates, and why regional bank stocks could help move the needle.
Disney and Fortnite-maker Epic Games will collab on making new video games with Disney characters. Hopefully it will be more than Mickey Mouse hitting the Griddy.
Hershey is cautioning on its 2024 profit growth as the company contends with rising cocoa costs, leading to increased prices for chocolate. The company anticipates its full-year earnings per share being relatively flat, partly due to higher cocoa and sugar costs.
Prince Harry has reached an out-of-court settlement with a tabloid newspaper publisher that invaded his privacy with phone hacking and other illegal snooping. Attorney David Sherborne said that Mirror Group Newspapers had agreed to pay Harry’ “substantial” costs and damages.
An attorney representing passengers of an Alaska Airlines flight that lost a door plug in midair says a “whistling sound” was heard on a previous flight of the same Boeing 737 Max 9.
