Announced: The largest railroad merger ever.

Motley Fool. ^ | 03-23-2021 | Lou Whiteman

[em2vn]

Canadian Pacific Railway (NYSE:CP) is looking to the south for growth, announcing plans to acquire Kansas City Southern (NYSE:KSU) for $29 billion.

[em2vn]

This idea was originally offered under the Clinton Administration. Under the original plan the seaports in the U.S. would be all but shut down and seaports in Mexico, run by communist chinese, would receive the bulk of shipping.

[rktman]

Any word on Amtrak from the southern meh-eek-oh border to Toronto yet? The Illegal Unlimited.

[rktman]

Well the got the canal already right? Correct as needed. 😕🐎💩

[PAR35]

I’m not sure how they get to “largest”. Non-inflation adjusted dollars? I would think that the BN-SF merger and the UP-SP merger both had more track mileage.

[gattaca]

bmp

[JerryBlackwell]

Believe Warren Buffet paid north of 30 million for BNSF

[NWFree]

Canada was just ripped off on their pipeline by US socialists - what else are they supposed to do?

[bigbob]

way north

[Ruy Dias de Bivar]

KCS goes by my house. When the Keystone Pipeline was shut down I noticed a large number of oil tanker cars going South being pulled by Canadian Pacific engines.

[Ruy Dias de Bivar]

A year or so ago I noticed a train going South being pulled by Kansas City Southern de Mexico engines.

[PROCON]

FYI

[Mouton]

Under the original plan the seaports in the U.S. would be all but shut down and seaports in Mexico,

The ones on the west coast would face a drop off in shipping for sure. Perhaps it has something to do with those ports being open in Mexico due to the extortion by the west coast port unions?? Port wages are greatly different between the east and west coasts from what I gather.

[dfwgator]

Kill it.

[rktman]

“Snowpiercer”?

[FreeReign]

I’m not sure how they get to “largest”. Non-inflation adjusted dollars? I would think that the BN-SF merger and the UP-SP merger both had more track mileage.

Must be non-inflation adjusted bucks.

[Mouton]

Interesting, CP first tried a linc up with CSX, then NSouthern. The first two failed due to resistance. Now KSU.
This one might go through.

[Alberta's Child]

Right. No way is this the REAL largest merger. From what I’ve read, the merged CP-KCS will still be the smallest Class I railroad in North America.

[JerryBlackwell]

meant 30 billion not million

[Publius]

Saw it. KCS has a limited amount of track in the US -- they are a small player here -- but they own a massive amount of track in Mexico. They are predominately a Mexican railroad with a US headquarters. It gives CP a good footing in Mexico.

Expect BNSF and CN to once again try to merge. They tried it 20 years ago, but the government rejected it. It was too soon after the disastrous UP/SP merger that jammed the combined tracks for months at a time. I think they'll try it again.

[PAR35]

the merged CP-KCS will still be the smallest Class I railroad in North America.

Class I is a lot smaller than it was when I was young.

Florida East Coast would be Class I if revenues were consolidated with the transportation assets of its parent Groupo Mexico. I don't know that you could get there with just the FEC (Class II) and Texas Pacifico (Class III) assets in the US, but if so, it would be shorter.