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Approval of Kansas City Southern and Canadian Pacific Railway Merger


The U.S. Surface Transportation Board has approved the purchase of Kansas City Southern Railway Company by Canadian Pacific Railway Ltd. in a transaction valued at $31 billion.  This will create a single carrier extending from Canada to Mexico operating 20,000 miles of track and employing 20,000.


The merger was regarded by the regulatory authority as an end-to-end operation without overlapping routes.  The combination will enhance efficiency and create competition among the six large U.S. railways.  This might create some benefits for the U.S. poultry industry.