Canadian Pacific Railway announced that it has entered into a $25B merger agreement to acquire Kansas City Southern to create the first and only continuous rail network connecting Canada, the US and Mexico. The agreement must satisfy shareholders and a federal review process by the Surface Transportation Board that will assess the merits of the transaction in accordance the applicable merger rules and the “public interest” review criteria. If all goes well, CP and KCS expects to begin the integration of the two railways in mid-2022. CP has stated that the merger is intended to support new growth and is not a move towards rationalization.
