Shipping and Logistics

March 22, 2021
Canadian Pacific and Kansas City Southern Plan Rail Merger
Written by Sandy Williams
A railway network spanning Canada, the U.S. and Mexico is in the planning by Canadian Pacific and Kansas City Southern Railways. The two companies have entered into a merger agreement in which CP will acquire KCS for $29 billion and assume $3.8 billion of KCS debt. If approved by the Surface Transportation Board, it will be the first rail network connecting all three nations in North America.
“This transaction will be transformative for North America, providing significant positive impacts for our respective employees, customers, communities and shareholders,” said CP President and Chief Executive Officer Keith Creel. “This will create the first U.S.-Mexico-Canada railroad, bringing together two railroads that have been keenly focused on providing quality service to their customers to unlock the full potential of their networks. CP and KCS have been the two best performing Class 1 railroads for the past three years on a revenue growth basis.”


