The Surface Transportation Board of the United States said on Wednesday it had approved Canadian Pacific’s $31 billion acquisition of railroad company Kansas City Southern with a series of environmental and competition conditions.
The board, which oversees U.S. freight railroads, is imposing some requirements on the deal, which was agreed in 2021, including an “unprecedented seven-year oversight period along with extensive data-reporting requirements.”
The acquisition, which combines the sixth- and seventh-largest railroads operating in the United States by revenue, will create the first railroad providing a single-line service spanning Canada, the United States and Mexico. It is projected to add 800 new unionized operational jobs in the United States and will shorten the average length of trains by just under 20%.
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