Canadian Pacific Railway Ltd. received a green light to complete its US$27 billion acquisition of Kansas City Southern, overcoming opposition from shippers and creating the only rail operator serving the U.S., Canada and Mexico.
to complete its US$27 billion acquisition of Kansas City Southern, overcoming opposition from shippers and creating the only rail operator serving the U.S., Canada and Mexico.
The approval comes with some conditions, including an obligation to keep gateways open to other railroads, to provide a dispute resolution mechanism to address commuter disruptions in Chicago and a seven-year oversight commitment to address any issues that arise from the acquisition. The decision comes despite heightened scrutiny of the U.S. rail industry in the wake of a series of derailments, including a toxic chemical spill in Ohio, and tense relations between company management and labor groups. Canadian Pacific’s financial transaction to acquire Kansas City Southern’s shares was wrapped up in December 2021, but the railways were required to continue operating separately until the board gave final approval of the deal.
Shippers were among the loudest critics of the acquisition of KCS, which they fear will lead to higher prices and reduced service as a result of more concentration of ownership. The U.S. Justice Department also opposed to the merger, but it doesn’t have regulatory power to approve or deny railroad deals.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
U.S. regulator approves Canadian Pacific Railway deal to buy Kansas City SouthernCanadian Pacific Railway\u0027s deal to acquire Kansas City Southern has been approved by U.S. regulators with conditions. Find out more
Read more »
Wednesday’s analyst upgrades and downgradesCanadian Pacific among stocks featured
Read more »
Heard to wear armband in 2023 as Pacific FC captainCPL side opens season April 15
Read more »
Ottawa says Kearl leaks harmful to wildlife; issues order to stop seepageFederal inspectors order Imperial Oil Ltd. to halt seepage from tailings pond
Read more »
Canadian regulator seizes assets of Toronto branch of Silicon Valley BankOTTAWA — Canada's banking regulator says in light of the decision by the California Department of Financial Protection and Innovation to shut down Silicon Valley Bank, it has temporarily seized assets of the Canadian branch to preserve their value. U.S. banking regulators were forced to urgently close the California-based institution on Friday after billions of dollars were withdrawn by fearful depositors. In a statement, Canada's Office of the Superintendent of Financial Institutions says the b
Read more »
Sarah Polley, Daniel Roher and Brendan Fraser among Canadian Oscar winnersSeveral Canadians came away with first-time Oscar wins at the Academy Awards Sunday night.
Read more »