Canadian Pacific Railway’s proposed acquisition of US/Mexico railroad Kansas City Southern will create history’s first Canada-US-Mexico railroad, resulting in new service lanes and growth across North America.
Both companies announced Sunday morning that CP would seek to acquire KCS in a deal worth $29 billion, pending approval from the US Surface Transportation Board. If approved, the merger could be finalized by mid-2022.
“The new competition we will inject into the North American transportation market cannot happen soon enough, as the new [United States-Mexico-Canada] Trade Agreement among these three countries makes the efficient integration of the continent’s supply chains more important than ever before,” Keith Creel, CP president and CEO, said in a statement Sunday.
The merger would connect customers with 6 of the 7 largest metropolitan regions in North America, potentially reducing transit times, as well as, providing new and improved product offerings. The new railroad would immediately benefit containerized auto parts and finished automobiles moving between the US and Mexico.