May 17, 2022

The Queens County Citizen

Complete Canadian News World

Canadian Pacific acquired a large American company

Canadian Pacific acquired a large American company

The Canadian Pacific has reached an agreement to acquire Kansas City Southern, a major U.S. competitor, with the goal of creating a network connecting Canada, the United States and Mexico.

The Canadian Press

The two companies announced Sunday that the Canadian company will buy Kansas City Southern for about $ 25 billion ($ 31 billion).

Under the deal, the U.S. company’s stock value will be 5,275, indicating a 23% premium on Friday closing prices.

Kansas City Southern shareholders will receive 0.489 Canadian Pacific Railway shares and US $ 90 cash for each common share.

The transaction is required to be approved by US authorities. The review is expected to be completed by mid-2022.

According to the two companies, it could allow the creation of the first rail network connecting the three countries in North America.

Keith Creel, President and CEO of Canadian Pacific, said the deal would bring change to North America, with significant positive benefits for employees, customers, communities and shareholders of both companies.

It is also possible to consolidate the continent’s supply chains since the free trade agreement was signed between the three countries.

The newly merged company will run more than 32,100 kilometers of railroad tracks and generate a total revenue of approximately US $ 8.7 billion based on 2020 data.

The two networks meet in Kansas City. The new company will have operations across Canada, the US Midwest, the northeast and south-central United States, and Mexico.

Company in this article: (TSX: CP, NYSE: CP, NYSE: KSU)

READ  Student Loans: For Desjardins insurance premiums.5 9.5 million repayable