Twenty thousand miles (32,000 km) of tracks crossing three countries: this is the first direct link between Canada, the United States and Mexico. When the Canadian Pacific Railways (CP) and Kansas City South (Kcs) announced the merger last spring, there was a billion-dollar operation for the super railroad. The deal is worth around .5 25.5 billion between the two big names in the US stock market.
However, the Canadian National Railway (CN), a North American railway company, intervened, reintroducing Kansas City Southern with an excellent offer. However, the offer was not complied with, so on Wednesday the Canadian Pacific Railways signed an agreement to seize Kansas City Southern: a 23 23 billion move, which, according to the Wall Street Journal, will be one of the largest connections. If possible the last twenty years.
“Our path to this historic agreement strengthens our confidence in this partnership,” said Keith Kreel, Chairman and CEO of CP, adding, “We will open the full potential of our networks by connecting with us and increasing customer service. -Mexico-Canada Rail builds, new competitive options to support North American economic growth.I do not expect regulatory issues for agreement approval.
The Canadian Pacific is a transcontinental railway that operates directly with major ports on the west and east coasts of Canada and the United States; Kcs is a transportation company with rail investments in the United States, Mexico and Panama.
The merger will generate a network that employs 20,000 people and could generate about 4 7.4 billion a year, according to Reuters.
“We are pleased to be working with CP to build a railroad capable of competing in the market,” said Patrick J. Ottensmeyer, President and CEO of Kcs.
The new railroad will favor companies that decide to move some of their production closer to the final markets in North America, which is a small revolution for freight. CP predicts that the new connections will remove trucks from congested U.S. highways, reduce emissions and reduce the need for public infrastructure investment. One train can pull more than 300 trucks off the roads and create 75% less greenhouse gas emissions.
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