CP Rail's deal to buy Kansas City Southern clears final regulatory hurdle

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CP Rail's deal to buy Kansas City Southern clears final regulatory hurdle
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Canadian Pacific Railway\u0027s takeover of Kansas City Southern Railway clears final regulatory hurdle. Find out more

CP has said the merger will build a more efficient and competitive rail network, and provide customers with a more reliable and economical transportation option serving critical north-south trade flows.

In its decision Wednesday morning, the Surface Transportation Board said the merger is “end to end,” meaning there are few overlapping routes. It will speed up freight travel time, enhance efficiency and allow for better competition with the other five, larger U.S. railways, it said. “Even end-to-end mergers, however, can pose competitive risks, and indeed this decision overturns prior agency precedent that did not sufficiently recognize such concerns.”

CP and KCS first announced a friendly offer in March of 2021 after a behind-the-scenes duel over the U.S. railway.

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