Canadian Pacific Agrees to Buy Kansas City Southern for $25B

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.’’

More In Business

The Best Fashions These Days Are — Surprise! —Sustainable as Well

Fast fashion may be becoming a thing of the past as consumers are increasingly turning toward more sustainable fashion choices — and brands listening.

Summer 2024: AAA Forecasts 44M Travelers, Solo Trips, AI, and Taylor Swift

AAA predicts a surge in summer 2024 travel, with 44 million travelers, surpassing pre-pandemic levels. Expect more solo trips, AI use, and Taylor Swift.

Impossible Wants Meat Eaters to Add Plant-Based Burgers to Their BBQ

As Americans prepare for a long weekend of grilling, Impossible Foods wants to put aside the culture wars, win over meat eaters – and IPO when it's 'ready.'

Nvidia Earnings Shatter Expectations: ‘It’s Not a Chip Stock Anymore’

Nvidia is almost a ‘monopoly’ when it comes to A.I. – but after proving growth in its other businesses, it’s not just a chip stock anymore.

Chill Out, Boomers: Young Consumers Really Have Faced a Tough Economy

Younger consumers are maxing out their credit as they deal with a tough economy, a Bankrate analyst explains.

As Grocery Prices Surge, Thrive Market Emerges as Affordable Solution

In April, grocery prices rose by 1.2 percent, reaching pre-pandemic levels of food inflation. Could an e-commerce grocer be the solution? Thrive Market says yes

Debating Whether to Buy Nike Stock? One Analyst Says Just Do It

Americans spend billions on athleisure every year, and these underperforming brands have room to grow.

When You Buy That New PC, Microsoft Wants it to be Powered by A.I.

Microsoft hopes that the millions of people who haven’t bought new computers since 2020 will help turn the company into a leader in the A.I. space.

A Date Is Set! What Recording Academy CEO Harvey Mason Jr. Teased About The 2025 Grammy Awards

The Recording Academy CEO, Harvey Mason Jr., sat down with Cheddar to discuss what to expect on Sunday, February 2nd 2025 at the 67th Annual Grammy Awards.

Get Comfortable: The U.S. Economy Is Heading for a Soft Landing

Parsing through the latest news might make it feel impossible to tell how the U.S. economy is doing. This analyst's take? We're in the best case scenario.

Load More