Zero Hedge – by Tyler Durden
Canadian Pacific Railways has agreed to buy Kansas City Southern for $25 billion ($28.9 billion including debt) in the largest takeover deal this year. The transaction which sees CP take over the smallest of the seven Class 1 railway operators that dominate a significant share of freight activity in the US, is the biggest in CP’s history and will create a 20,000-mile rail network including the first U.S.-Mexico-Canada railroad.
As the FT, which first reported the transaction, notes, the deal marks the latest effort to shake up a structure among the big railroads in the US and Canada that has been unchanged since CSX and Norfolk Southern — the two big operators in the eastern US — took over Conrail and divided it between themselves in 1999. Continue reading “Canadian Pacific Buys Kansas City Southern For $25BN In Largest Deal Of 2021”