• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Republica Press

Your Business & Political News Source

REPUBLICA PRESS
Your Business & Political News Source

  • Home
  • BUSINESS
  • MONEY
  • POLITICS
  • REAL ESTATE
  • SCIENCE/TECH
  • US
  • WORLD
  • VIDEOS

Canadian National Railway Outbids Rival for Kansas City Southern

by

The railroad barons are at it again.

Canadian National Railway on Tuesday offered to buy Kansas City Southern for $33.7 billion, topping a $29 billion bid put forward last month by a rival railroad operator, Canadian Pacific.

The competing offers underline the riches expected to come from trade flows after the United States-Mexico-Canada Agreement was passed into law last year. A merger with either suitor would create a railroad line that stretches from Canada to Mexico. In the already consolidated railroad industry, few lines are left to bid on — let alone deals that will be approved by regulators.

Canadian National said in a letter to Kansas City board that the company had spent “considerable time and resources analyzing a potential combination of our two companies.” It argues its offer represents “an unparalleled opportunity to create a premier railway for the 21st century.”

The offer gives Kansas City Southern a valuation 21 percent higher than Canadian Pacific’s bid, which had been agreed on by the companies’ boards.

track agreements extending to the Gulf of Mexico.

The rival bid is one further challenge to Canadian Pacific’s offer, which was already facing regulatory scrutiny. The U.S. Department of Justice has urged the Surface Transportation Board — which must approve the offer — to examine the deal under tough industry guidelines put in place in 2001 and expressed concern over its use of a voting trust that would it allow it close the deal even before getting regulatory approval.

Canadian Pacific has argued that there should be no regulatory trouble, given the two railroads have no overlap and in some cases create new markets. It said its smaller size compared with other major North American railroads should exempt it from the guidelines.

View Source

Filed Under: BUSINESS Tagged With: Canada, Canadian National Railway Company, Canadian Pacific Railway Ltd, CNN, Industry, Kansas, Kansas City Southern, Law, Mergers, Acquisitions and Divestitures, Mexico, National, Railroads, Regulation and Deregulation of Industry, Regulators, trade, Transportation

Primary Sidebar

More to See

‘Everybody Is Armed’: As Shootings Soar, Philadelphia Is Awash in Guns

There were no arrests in three quarters of last year’s fatal shootings, according to statistics provided by Mr. Krasner’s office, even as arrests for … [Read More...] about ‘Everybody Is Armed’: As Shootings Soar, Philadelphia Is Awash in Guns

$5.45 Million Sale of 25-Unit Highland Park Community in Los Angeles, CA, Arranged by The Mogharebi Group

COSTA MESA, Calif.--(BUSINESS WIRE)--The Mogharebi Group ("TMG") has arranged the $5.45 million sale of San Pascual, a 25-unit community located in … [Read More...] about $5.45 Million Sale of 25-Unit Highland Park Community in Los Angeles, CA, Arranged by The Mogharebi Group

GM reveals new GMC Canyon premium midsize pickup, starting at $40,000

2023 GMC Canyon DenaliGMDETROIT — General Motors on Thursday revealed its redesigned GMC Canyon as a more premium offering than the current midsize … [Read More...] about GM reveals new GMC Canyon premium midsize pickup, starting at $40,000

Copyright © 2022 · Republica Press · Log in · As an Amazon Associate we earn from qualifying purchases.

Terms and Conditions - Privacy Policy