Canadian National Railway Co. has supplied to purchase U.S. railway Kansas City Southern in a cash-and-stock bid valued at $33.7 billion US.
The provide of $325 a share plus agreeing to take over $3.8 billion value of KCS’s debt tops a proposal made by Canadian Pacific Railway for KCS final month, one that supplied $275 a share for a complete price ticket of $25 billion.
The transfer would deliver ports and rail traces within the United States, Mexico and Canada collectively beneath one community to create probably the most far-reaching transportation networks in North America.
“CN and KCS have highly complementary networks with limited overlap that will enable them to accelerate growth in single-owner, single-operator, end-to-end service across North America,” CN president J.J. Ruest mentioned in a press release.
“With safer service and better fuel efficiency on key routes from Mexico through the heartland of America, the result will be a safer, faster, cleaner and stronger railway.”
More to come back