Roy Luck
The deal is valued at $29 billion, including Kansas City Southern's debts, the largest merger in the market since the beginning of the year. Kansas City Southern shareholders will receive 0.489 Canadian Pacific shares per share and $90 in cash, a 23% premium over the company's closing share price on Friday.
Canadian Pacific Railway operates several transcontinental railways in southern Canada and the northern United States, connecting the coasts of the Atlantic and Pacific Oceans. The company is the second-largest rail operator in Canada after Canadian National Railway, with a capitalisation of $50.6 billion. Kansas City Southern connects cities in northern Mexico with southern and central American states, with more than half of its revenues coming from flights to or from Mexico.
The deal has yet to be approved by the US rail regulator. After the merger, Canadian Pacific Railway will become the only company operating railways in all parts of North America - Canada, the United States and Mexico. The merged company's annual revenue will reach $8.7 billion and it will operate almost 32,200 km of railways.
source: cnn.com
Canadian Pacific Railway operates several transcontinental railways in southern Canada and the northern United States, connecting the coasts of the Atlantic and Pacific Oceans. The company is the second-largest rail operator in Canada after Canadian National Railway, with a capitalisation of $50.6 billion. Kansas City Southern connects cities in northern Mexico with southern and central American states, with more than half of its revenues coming from flights to or from Mexico.
The deal has yet to be approved by the US rail regulator. After the merger, Canadian Pacific Railway will become the only company operating railways in all parts of North America - Canada, the United States and Mexico. The merged company's annual revenue will reach $8.7 billion and it will operate almost 32,200 km of railways.
source: cnn.com
