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Mexican regulators approve CP Rail deal to buy Kansas City Southern

WATCH: Market and Business Report May 14 2021 – May 14, 2021

Mexican regulators have given their approval to Canadian Pacific Railway Ltd.‘s deal to buy U.S. railway Kansas City Southern.

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The railways say the deal has received the OK from the Mexican Federal Economic Competition Commission and the Mexican Federal Telecommunications Institute.

Calgary-based Canadian Pacific has agreed to buy KCS in a deal valued at US$31 billion, including the assumption of US$3.8 billion of debt.

CP and KCS shareholders are scheduled to vote on the proposed transaction on Dec. 8 and 10, 2021, respectively.

Canadian Pacific expects a review of the deal by the U.S. Surface Transportation Board to be complete in the fourth quarter of next year.

The U.S. regulator has already approved the use of a voting trust for the transaction that allows KCS shareholders to receive payment after shareholders of both companies approve the deal but before it receives final approval.

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