Kansas Metropolis Southern, Canadian Pacific intention to complete merger by 2022

Kansas Metropolis Southern, Canadian Pacific intention to complete merger by 2022

KANSAS CITY, Mo. — Canadian Pacific hopes to finish its $31 billion acquisition of Kansas Metropolis Southern railroad earlier than the top of subsequent yr.

Shareholders of each firms are prone to vote on the deal someday in December, after which Mexican and American regulators must log off on the mix earlier than the 2 railroads can merge.

Officers from each railroads offered an replace on the timing of the deal Thursday in a name with buyers a day after saying that they had finalized their merger settlement.

Canadian Pacific CEO Keith Creel stated the Mexican overview of the deal is predicted to take between two and 4 months. After that’s full and if shareholders of each railroads approve, then a voting belief might be created to amass Kansas Metropolis Southern and personal it throughout the U.S. Floor Transportation Board’s full overview. That’s the level when KCS shareholders can be paid.

Creel stated he hopes the STB overview of the deal will wrap up in October or November of subsequent yr and permit the 2 railroads to mix, however the regulatory overview may take longer.

Whether it is permitted, Canadian Pacific’s acquisition of Kansas Metropolis Southern would be the first merger of two of the continent’s seven largest railroads for the reason that Nineteen Nineties.

The mixed firm, based mostly in Calgary, Alberta, Canada, is predicted to make use of about 20,000 individuals and it’ll keep main U.S. operations facilities within the Minneapolis and Kansas Metropolis areas.