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Approval of Kansas City Southern and Canadian Pacific Railway Merger

03/20/2023

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.