CP and KCS Merger Approved for Foreign Investment

The merger between Canadian Pacific Railway Ltd. (CP) and Kansas City Southern (KCS) is one step closer to completion, as it recently received clearance from the U.S. Committee on Foreign Investment. The deal isn’t done yet, as it still requires approval from the U.S. Surface Transportation Board, which expects to complete its review in early 2023. Mexican regulators have already given their approval.

CP’s purchase of KCS in Dec 2021 for US$31 billion would create the only single-line railroad linking Canada, the United States, and Mexico. CP said its acquisition will allow for 60,000 truckloads to be shifted off public highways every year, enabling significant growth for its rail customers.

Sources:
1. CP-KCS deal wins OK from foreign investment committee in U.S., BNN Bloomberg, Aug 17, 2022. Accessed Aug 22, 2022.
2. CP and KCS merger cleared for foreign investment, Chamber of Shipping, Aug 19, 2022. Accessed Aug 22, 2022.