CP-KCS deal wins OK from foreign investment committee in U.S.
Canadian Pacific Railway Ltd. is one step closer to receiving the regulatory go-ahead for its acquisition of Kansas City Southern.
The Calgary-based railway said Tuesday its purchase of KCS has received the required clearance from the U.S. Committee on Foreign Investment.
However, the deal – which would create the only single-line railroad linking the United States, Mexico and Canada – still requires approval by the U.S. Surface Transportation Board, which is currently reviewing the transaction.
CP said it expects a decision from the STB early next year.
Last year, Canadian National Railway Co. dropped its rival takeover bid for KCS after the Surface Transportation Board rejected its request for a voting trust.
CP then agreed to buy KCS in an agreement valued at US$31 billion, including the assumption of US$3.8 billion of debt.
CP's deal closed in December, but the shares of KCS were placed into a voting trust that allows the U.S. railway to operate independently while the STB completes its review.
Mexican regulators have already given their approval to the deal.
CP has said its acquisition of KCS will enable significant growth for its rail customers, and allow for 60,000 truckloads annually to be shifted off public highways.
Following the completion of the transaction, CP expects the deal to generate $1 billion in annualized synergies within the first three years.
This report by The Canadian Press was first published Aug. 16, 2022.
CTVNews.ca Top Stories
B.C. tenants evicted for landlord's use after refusing large rent increase to take over neighbouring suite
Ashley Dickey and her mother rented part of the same Coquitlam duplex in three different decades under three different landlords.
Mountain guide dies after falling into a crevasse in Banff National Park
A man who fell into a crevasse while leading a backcountry ski group deep in the Canadian Rockies has died.
Expert warns of food consumption habits amid rising prices
A new survey by Dalhousie University's Agri-Food Analytics Lab asked Canadians about their food consumption habits amid rising prices.
MPP Sarah Jama asked to leave Ontario legislature for wearing keffiyeh
MPP Sarah Jama was asked to leave the Legislative Assembly of Ontario by House Speaker Ted Arnott on Thursday for wearing a keffiyeh, a garment which has been banned at Queen’s Park.
Charlie Woods, son of Tiger, shoots 81 in U.S. Open qualifier
Charlie Woods failed to advance in a U.S. Open local qualifying event Thursday, shooting a 9-over 81 at Legacy Golf & Tennis Club.
Ex-tabloid publisher testifies he scooped up possibly damaging tales to shield his old friend Trump
As Donald Trump was running for president in 2016, his old friend at the National Enquirer was scooping up potentially damaging stories about the candidate and paying out tens of thousands of dollars to keep them from the public eye.
Here's why provinces aren't following Saskatchewan's lead on the carbon tax home heating fight
After Prime Minister Justin Trudeau said the federal government would still send Canada Carbon Rebate cheques to Saskatchewan residents, despite Saskatchewan Premier Scott Moe's decision to stop collecting the carbon tax on natural gas or home heating, questions were raised about whether other provinces would follow suit. CTV News reached out across the country and here's what we found out.
Montreal actress calls Weinstein ruling 'discouraging' but not surprising
A Montreal actress, who has previously detailed incidents she had with disgraced Hollywood producer Harvey Weinstein, says a New York Court of Appeals decision overturning his 2020 rape conviction is 'discouraging' but not surprising.
Caleb Williams, Jayden Daniels and Drake Maye make it four NFL drafts with quarterbacks going 1-3
Caleb Williams is heading to the Windy City, aiming to become the franchise quarterback Chicago has sought for decades.