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Kansas City Southern Railway’s board reinstates $ 27 billion offer from Pacific Canada, despite U.S. regulators agreeing to sell the company to rivals after refusing to close previous transaction I am considering it.
Headquartered in Kansas City, Missouri, the Railroad Commission, which runs between the city and Mexico, said on Saturday that the Canadian Pacific offer “reasonably leads” to a “better” offer than the Canadian National Railway made. You can expect it. ” You could buy a railroad for $ 30 billion.
Kansas City Southern said it would publish the book to the Canadian Pacific, but said the move would not necessarily lead to a deal.
Both Canadian railroads are pursuing the rare opportunity to extend their reach to the United States by snapping one of only seven large railroads in North America.Canada Pacific previously had larger offers from competitors Scrutiny of stricter regulations The deal is facing.
If the Canadian National Railway acquired Southern Kansas City, the railroad would be the third largest on the continent. The partnership with the Canadian Pacific Railway is the smallest of the remaining six major rail operators.
Last week, the Surface Transportation Board, which regulates railroads, ruled that the “voting trust” proposed by the Canadian National Railway could not be used. The trust would have allowed Kansas City Southern shareholders to receive payments before the merger was approved.
Both the Canadian National Railway and southern Kansas City said they were “disappointed” with the regulatory decision. The Canadian National Railway added that the deal “strengthens competition” and offers “new and faster routes.”
The alliance is The global supply chain is tense. Shippers pay high fees to railroads, trucks, ships and airlines to carry freight by ferry to meet consumer demand.
Keith Creel, CEO of the Canadian Pacific Railway, said the deal between his railroad and southern Kansas City was “the only truly end-to-end Class 1 merger to maintain and strengthen competition. “. The perfect combination. .. .. For the railroad industry and commerce in North America. “
Canada Pacific Previously provided He paid $ 275 per share in railroad stock and cash, but raised it to $ 300 per share.
Kansas City Southern closed at $ 291.63 on Friday.
Kansas City Southern Considers New $ 27 Billion Offer from Canadian Pacific
Source link Kansas City Southern Considers New $ 27 Billion Offer from Canadian Pacific