The $ 31 billion plan to acquire southern Kansas City in the Pacific Canada raises one of Wednesday’s last hurdles when CP shareholders overwhelmingly approve a deal to build the first railroad linking the United States, Canada and Mexico. I cleared it.
Ownership of the Missouri-based railroad will change next Tuesday, as long as shareholders in southern Kansas City approve the transaction later this week. Southern Kansas City will not see any significant changes immediately as it will be held by a voting trust next year while the US Surface Transportation Board is scrutinizing the transaction.
Keith Creel, CEO of the Canadian Pacific, said:
The transaction review by US regulators is expected to be completed in the fourth quarter of next year. The STB has not approved the merger of major railroads since the 1990s, but executives of the two railroads say they do not expect the merger to be approved. Mexican regulators approved the deal last month.
Shareholders in southern Kansas City will be paid next week when the voting trust buys the railroad. As long as they approve the transaction on Friday, they will receive $ 90 in cash and 2.884 CP shares at that time. The Pacific Canada has also agreed to assume a $ 3.8 billion debt in southern Kansas City.
Canadian Pacific won the bid for Southern Kansas City earlier this year, even though the Canadian National Railway offered to pay $ 33.6 billion as the STB rejected part of CN’s plans to acquire Southern Kansas City.
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CP Shareholders Support $ 31 Billion Purchase in Southern Kansas City | WGN Radio 720
Source link CP Shareholders Support $ 31 Billion Purchase in Southern Kansas City | WGN Radio 720