- The Surface Transportation Board has approved Canadian Pacific’s $31 billion deal to buy Kansas City Southern, making the railroad the first to operate across North America.
- The combined railroad will not overtake the fifth-largest carrier, Canadian National.
- The deal will reduce carbon emissions by shifting about 64,000 truckloads a year to rail from the roads and add more than 800 union jobs in the United States.
- The board approved the merger but imposed some conditions on the railroads to keep open their existing gateways and created a process that will allow shippers to challenge certain rate increases by the new company.
- The merger will create a new carrier, Canadian Pacific Kansas City, which will operate about 20,000 miles of track and employ about 20,000 people.
The New York Times — Business — Railroad merger — Railroads — Regulation and Deregulation of Industry — Mergers, Acquisitions and Divestitures
U.S. Approves $31 Billion Merger of Two Big Railroads
The Surface Transportation Board approved Canadian Pacific’s $31 billion deal to buy Kansas City Southern, creating a new railroad that will operate across North America and benefit the US economy, safety, and the environment.