Posted on 03/21/2021 8:14:44 AM PDT by dynachrome
Canadian Pacific Railway Ltd. agreed to acquire Kansas City Southern in a merger valued at about $25 billion that would create the first freight-rail network linking Mexico, the U.S. and Canada.
The companies said Sunday their boards agreed to a deal that values Kansas City at $275 a share in a combination of cash and stock. Kansas City investors will receive 0.489 of a Canadian Pacific share and $90 in cash for each Kansas City common share held.
If approved by regulators, the deal would unite two of the major North American freight carriers, linking factories and ports in Mexico, farms and plants in the midwestern U.S. and Canada’s ocean ports and energy resources.
The transaction will need approval from the U.S. Surface Transportation Board, which requires major railroad combinations to demonstrate they are operating in the public interest by enhancing competition. The merger partners said they expect the STB review to be completed by the middle of 2022.
The combined company, to be renamed Canadian Pacific Kansas City, would have about $8.7 billion in annual revenue and employ nearly 20,000 people. It would be run by Canadian Pacific CEO Keith Creel. Kansas City investors would own about 25% of the combined entity’s shares.
(Excerpt) Read more at wsj.com ...
The rest is behind a paywall, but the pertinent info is here.
***Canadian Pacific Railway Ltd. agreed to acquire Kansas City Southern***
When the Keystone Pipe Line was shut down I saw, a few weeks ago, a long train of oil cars heading south on the KCS line, pulled by Canadian Pacific Engines. Now I know why.
I’ve also noticed more oil tankers being pulled south toward Texas since then.
Yep. The oil will find its way to market no matter what Kamila the Hunny or Georgie Porgie directs..
Very interesting news. I’ve worked on projects related to these major railroad mergers in the past. Sometimes the biggest impacts aren’t from the merger itself, but from the conditions imposed on the merged company during its STB review process.
Right through my back yard more-or-less. The route in our county follows a large creedk almost all the way through north to south. Over the years there have been multiple derailments along that route on the line that goes to the Gulf. The creek is the water supply for the county seat and then it flows to the Arkansas River. The route also crosses one of the oldest bridges across the river. Guess it will stand up to the traffic, it has so far.
I hate to see the KCS go. It was one of the last successful independent lines. An old trainman told me just a year ago it was a stock to buy just for its route advantages.
The old gray livery was much better than the new yellow and orange.
Hauling oil in tank cars is antiquated. Sane people gave it up ages ago because it is so inefficient and risky. If it were oilfield waste the shipper and the carrier would both be liable for spills.
I hope they all choke on this acquisition. Calling these mergers is just silly. Canadian Pacific Kansas City Southern? Chevron Gulf Texaco Getty Unocal and so on.
My uncle was a freight conductor on the Union Pacific in the 40s and 50s—back when they rode in a caboose. Part of his job was to ‘discourage’ riders like these. How rough the discouragement was depended on the rider’s attitude. If they were pleasant enough, he’d let them off when the train slowed down coming into a yard before the railroad police could get ahold of them.
The Juarez Cartel doesn’t need any permits. They just build all the tunnels they need, and make more money than J.D. Rockefeller.
Those were the days.....
I wish the SEC would look at which politicians recently bought up stock n those companies.
Hardwiring is right! Last year I saw a train go by on the KCS tracks. The engines were “Kansas City Southern de Mexico.”
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