We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » CP and KCS shareholders vote to approve merger and launch combined North American rail network

CP and KCS shareholders vote to approve merger and launch combined North American rail network

Deal now expected to close on December 14 and await federal approval in 2022.

CP-rail-Screen-Shot-2021-12-10-at-5.34.18-PM.png
December 10, 2021
Ben Ames
No Comments

Canadian Pacific Railway (CP) today took its latest step toward a planned $31 billion merger with the U.S. freight rail line Kansas City Southern (KCS), following votes by both companies’ stockholders to approve the deal.

The firms say the move would create the first single-line rail network linking the U.S., Mexico, and Canada. It follows a competing bid from rival freight carrier Canadian National that was turned aside in September by federal regulators.

Today’s vote by KCS stockholders showed that 99.6% were cast in favor of the proposed merger agreement. It follows a vote on Wednesday by CP stockholders which produced a similar result, with 99.9% of voters in favor of the deal.

“This week, shareholders of both CP and KCS overwhelmingly supported this transformative proposal to create the first U.S.-Mexico-Canada rail network,” Keith Creel, CP’s president and CEO, said in a release. “With strong shareholder support, we are excited to complete the steps required to close the CP-KCS transaction into the voting trust, a critical milestone in the journey to make Canadian Pacific Kansas City a reality.”

Together, the two votes mean that the transaction is now expected to close on December 14. Immediately following that move, ownership of KCS will be held in a “voting trust” pending the U.S. Surface Transportation Board (STB)’s review and approval of CP’s proposed control of KCS, which is expected to occur in the fourth quarter of 2022, the railroads said. At that point, the combined companies will take on the new name of Canadian Pacific Kansas City Limited.

The voting trust is significant because that was the reason cited by the STB in denying the rival takeover bid, saying that CN’s version of a trust would have been insufficient at ensuring that KCS stayed independently managed pending completion of a full review of the proposed deal.

“The overwhelming support our shareholders have given today to the transaction is critical to making this combination a reality,” Creel said. “In the coming days, we will be working to complete the steps required to close into the voting trust, and in the months ahead we look forward to participating in the STB’s comprehensive regulatory review. Following receipt of STB approval and consummation of CP control, Canadian Pacific Kansas City will add new capacity to the U.S. rail network, create new competitive transportation options, support North American economic growth, and deliver other important benefits to customers, employees, and the environment.”

CP welcomes KCS stockholder vote adopting CP-KCS merger agreement.

See important information here: https://t.co/w3i3TY1IcU pic.twitter.com/ic8reY7YYt

— Canadian Pacific (@CanadianPacific) December 10, 2021
Rail
KEYWORDS Canadian Pacific Railway Kansas City Southern
  • Related Articles

    Barcoding, Inc. Expands North American Presence with Launch of Barcoding-Canada

    Canadian Pacific and Kansas City Southern agree on terms of $31 billion takeover

    North American transborder freight flow plunged 3.3% in October

Benames
Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.

Recent Articles by Ben Ames

Labor groups cheer Supreme Court decision to let AB5 stand

Data exchange at ports could cut emissions and costs, model shows

DB Schenker spends $435 million to buy Arkansas’ USA Truck

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • How to resolve your inventory dilemma

  • Container prices continue to drop

  • Regionalized supply chains: the key to resilience

  • Warehouse vacancy rates sink to 27-year low

  • Empty shipping containers stack up at U.S. port depots

Featured Video

Cccb7d13 710a 4473 8132 da8b6cc286f1

The Sportsman's Guide Case study: Increasing Accuracy & Productivity

Viewer Contributed
Thanks to the Lucas Warehouse Optimization Suite, The Sportsman's Guide has increased productivity, reduced training time, and experienced a boost in accuracy for both full-time staff and seasonal employees. Want to learn how Lucas can help your DC be more efficient, accurate, and safe while reducing labor costs?...

FEATURED WHITE PAPERS

  • Case Study: Peak Teams helps boost headcount quickly on a short-term project

  • Breaking Bad: Conducting Full Truckload RFPs in the Age of Digital Freight Procurement

  • Omnitracs One – Last Mile Solutions

  • The enterprise shipper's guide to building a smarter truckload RFP

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2022. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing