Canadian Pacific/Kansas City Southern Merger to Connect Canada, U.S., Mexico
NEW YORK (AP) — 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 at $224 Friday on the New York Stock Exchange.
The acquisition would need the approval of a U.S. regulator, the Surface Transportation Board.
The companies say 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.
Bill Stephens, a writer for Trains Magazine, said he didn't believe the merger would have any meaningful impact on rail traffic in Wyoming.
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