Canadian Pacific and Kansas Metropolis Southern finalize merger

Canadian Pacific and Kansas Metropolis Southern at this time made their rail merger official, a month after federal regulators with the U.S. Floor Transportation Board (STB) accepted the deal underneath situations regarding aggressive charges, environmental impacts, employee protections, and passenger rail entry.

Canadian Pacific Railway (CP) had been preventing for months to win a inexperienced mild for the $31 billion acquisition, saying it will create “the primary and solely single-line railway connecting Canada, the U.S. and Mexico.” CP received that contest after a rival bid from fellow freight provider Canadian Nationwide was turned apart by U.S. antitrust regulators.

The formal enterprise merger turned full at this time when shares of Kansas Metropolis Southern (KCS) had been transferred from a voting belief—the place that they had been saved to make sure independence through the assessment course of—to an affiliate of CP. With that step full, the mixed firms at the moment are often known as a brand new company known as Canadian Pacific Kansas Metropolis (CPKC), with its world headquarters in Calgary, Alberta, and a community of some 20,000 miles of rail and 20,000 workers.

Additionally at this time, Isabelle Courville, chair of the board of administrators of CPKC, introduced the appointment of 4 new administrators to that board, all drawn from the now-defunct KCS board as agreed by the merger. They’re: David Garza-Santos, Ambassador Antonio Garza (Ret.), Henry Maier, and Janet Kennedy. They may now be a part of a board that intends to roll out a full integration of CP and KCS over the following three years, in the end unlocking the advantages of the mix, the corporate mentioned.

“This unmatched CPKC community will give our prospects new choices and expanded attain to extra markets as we offer dependable rail service, take vans off public roads and lift the bar on rail security by increasing CP’s industry-leading security practices,” CPKC President and CEO Keith Creel mentioned in a launch. “The general public, environmental, aggressive and security advantages of this historic mixture are extraordinary for our railroaders, communities, rail prospects and the North American economic system.”