Canadian Pacific Rail (CP) is set to buy Kansas City Southern (KCS) for $29bn, in a stock and cash transaction.
If approved by the US Surface Transportation Board (STB), the deal will create the first railway that connects Canada, the US, and Mexico, and includes the assumption of $3.8bn of outstanding KCS debt.
CP president & CEO Keith Creel said: “This transaction will be transformative for North America, providing significant positive impacts for our respective employees, customers, communities, and shareholders.
“This will create the first US-Mexico-Canada railroad. CP and KCS have been the two best-performing Class 1 railroads for the past three years, on a revenue growth basis.”