Kansas City Southern will sell to Canadian Pacific in a stock and cash transaction valued at $29 billion dollars, the two companies announced on Sunday.
The boards of both companies have unanimously approved the deal, which still needs approval from the U.S. Surface Transportation Board. If that happens, Sunday’s announcement said the combined rail companies, which will take the name Canadian Pacific Kansas City, would create the first rail network that connects Canada, the United States and Mexico with its 20,000 miles of rail and 20,000 employees.
Canadian Pacific Kansas City will be led by Keith Creel, the current chief executive of Canadian Pacific. The expanded board of directors for Canadian Pacific Kansas City will eventually include four Kansas City Southern directors.
Source: The Kansas City Star
By Steve Vockrodt
