Canadian Pacific CP -1.37%
Railway Ltd. has agreed to acquire Kansas City Southern KSU 0.38%
in a merger valued at around $ 25 billion that would create the world’s first freight rail network linking Mexico, the United States and Canada.
The companies said Sunday that their boards of directors had agreed to a deal that values Kansas City at $ 275 a share in a combination of cash and stocks. Kansas City investors will receive 0.489 Canadian Pacific shares and $ 90 in cash for each Kansas City common share held.
If approved by regulators, the deal would unite two of North America’s major freight carriers, connecting factories and ports in Mexico, farms and factories in oceanic ports in the U.S. Midwest and Canada, and energy resources. .
The combined company is said to have annual sales of approximately $ 8.7 billion and employ nearly 20,000 people. It would be headed by CEO of Canadian Pacific, Keith Creel.
Kansas City Southern is the smallest of the five major freight railways in the United States, but plays a key role in trade between the United States and Mexico. Its network mainly stretches the length of Mexico through Texas to its eponymous city. Last year, the company rejected takeover bids worth around $ 20 billion from a group of institutional investors seeking to privatize it, the Wall Street Journal reported.
Canadian Pacific has long sought to unite with Kansas City to expand its reach on its busy freight routes that stretch from Mexico to the southern states and the US Midwest. CP’s main rail lines cross Canada, parts of the northern United States, and south to Chicago.
Canadian railroad chief Mr. Creel worked closely with former chief Hunter Harrison, who made a number of unsuccessful openings to buy Kansas City. Mr Harrison died in 2017 after taking over and reorganizing another US operator, CSX Corp.
This will create the first United States-Mexico-Canada railway, Creel said in a statement.
Rail mergers face significant regulatory hurdles in US Under Harrison’s leadership, Canadian Pacific dropped $ 30 billion lawsuit against Norfolk Southern Corp.
in 2016, after regulators expressed concern about reduced competition and potential safety concerns.
Kansas City and CPR currently have a single point where their two networks connect, at a facility in Kansas City, Missouri, which they jointly operate. The merger could allow trains traveling north and south to avoid having to swap cars and potentially bypass Chicago, a busy and often congested hub of the US freight system.
The merger partners have said the proposed combination will not reduce customer choice because there is no overlap between their systems. They said the possibility of single-line routes would move trucks off U.S. highways, reducing congestion and emissions in the Dallas-Chicago corridor.
The rail freight industry suffered a sharp drop in volume last year as the pandemic slowed trade and temporarily closed many U.S. stores, but volume rebounded as factories continued to operate and economies straightened up. The volume of trade has exceeded some US ports, causing traffic jams and delays.
Write to Jacquie McNish at [email protected]
Copyright 2020 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8
What Are The Main Benefits Of Comparing Car Insurance Quotes Online
LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos
to request, modification Contact us at Here or [email protected]