Canadian Pacific Railway Ltd agreed to acquire Kansas City Southern in a $25 billion cash-and-stock deal to create the first railway spanning the United States, Mexico and Canada, standing to benefit from a pick-up in trade.
“This network uniquely provides a supply chain that allows our customers and our partners to actually benefit from that and leverage that opportunity,” Canadian Pacific Chief Executive Keith Creel told Reuters in an interview.
“I don’t see it as the kind of consolidation that should raise concerns because it’s what you call an end-to-end or vertical merger. Their networks fit nicely with each other and help fill out North America with real service,” said economist Clifford Winston, a senior fellow at the Brookings Institution who specializes in the transportation sector.
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