Canadian Pacific Strikes Deal To Purchase Kansas City Southern Railroad
After a months-long drama, Canadian Pacific Railway Ltd. signed a $27.2 billion cash-and-stock deal to buy the Kansas City Southern railroad on September 15 after Canadian National Railway Company conceded it could not save its own $29.6 billion deal for the U.S. railway.
The historic deal creates the first rail network that connects Canada and Mexico. The move came shortly after an unfavorable ruling against Canadian National from the Surface Transportation Board, which must approve all rail mergers. The STB rejected the voting trust scheme Canadian National had proposed.
Canadian Pacific’s voting trust proposal was approved in May.