Advertisement

CP-KCS deal wins OK from foreign investment committee in U.S.

Canadian Pacific Railway trains sit idle on the train tracks due to the strike at the main CP Rail trainyard in Toronto on March 21, 2022. THE CANADIAN PRESS/Nathan Denette

Canadian Pacific Railway Ltd. says it has received regulatory approval from the Committee on Foreign Investment in the United States for its acquisition of Kansas City Southern.

CP agreed last year to buy KCS in an agreement valued at US$31 billion, including the assumption of US$3.8 billion of debt.

The deal still requires approval by the U.S. Surface Transportation Board.

Read more: CP Rail reaches collective agreement with 3,000 workers

The deal closed in December, but the shares of KCS were placed into a voting trust that allows the U.S. railway to operate independently while the U.S. Surface Transportation Board completes its review.

CP says it expects that review to be completed early next year.

Story continues below advertisement

The combination of the companies would create the only single-line railroad linking the United States, Mexico and Canada.

Click to play video: 'CP Rail arbitration with Teamsters union a ‘sigh of relief’ for Sask. farm, mining groups' CP Rail arbitration with Teamsters union a ‘sigh of relief’ for Sask. farm, mining groups
CP Rail arbitration with Teamsters union a ‘sigh of relief’ for Sask. farm, mining groups – Mar 22, 2022

Sponsored content