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.’’
Inflation is still high, and economic activity is starting to slow down. But before you start to panic about stagflation, wait to see this week’s jobs report.
With buildings responsible for over 40% of emissions worldwide, the CEO of Kelvin breaks down how its technology can be used to retrofit traditional radiators.
After battling inflation for years, now U.S. consumers have to prepare for stagflation, and, unfortunately, it could be more complicated to fix than a typical
