Kansas City Southern

Kansas City Southern is a transport holding company with investments in railways in the United States, Mexico and Panama. The company's rail network includes about 6,700 miles of tracks in the United States and Mexico. Kansas City Southern is one of the five largest rail freight operators in the United States. Kansas City Southern transports cars and other industrial products from Mexican enterprises to Texas and the Midwest, and delivers American agricultural goods to Mexico. Kansas City Southern is also the operator of a railway line running along the Panama Canal.

History

2021: Canadian Pacific bought Kansas City Southern for $31 billion

In mid-September 2021, Canadian rail operator Canadian Pacific bought the Kansas City Southern transportation company. The transaction amount reaches $31 billion.

As part of the deal, Kansas City Southern will receive $300 per share, shareholders of the company will receive 2.9 thousand ordinary shares of Canadian Pacific and $90 in cash. Following the transaction, Kansas City Southern shareholders will own about 28% of Canadian Pacific. The merger will create the first direct railway between Canada, the United States and Mexico with an annual income of approximately $8.7 billion.

Canadian Pacific acquired Kansas City Southern for $31 billion

According to Reuters, Kansas City Southern will have to pay Canadian National, which was fighting Canadian Pacific for a transportation company, $700 million for disrupting the deal, as well as an additional $700 million in compensation for terminating the deal with updated terms. Kansas City Southern agreed to cover both payments.

The deal will require approval from the US Bureau of Surface Transportation, which must ensure that the merger of large rail operators is in the interests of the state and does not prevent competition.^[1]

Notes