Skip to main content

Mexican regulators have given their approval to Canadian Pacific Railway Ltd.’s deal to buy U.S. rail system Kansas City Southern, which has more than 10,000 kilometres of track in the U.S. and Mexico.

The railways say the deal has received the go-ahead from the Mexican Federal Economic Competition Commission and the Mexican Federal Telecommunications Institute.

Calgary-based Canadian Pacific has agreed to buy KCS in a deal valued at US$31-billion, including the assumption of US$3.8-billion of debt.

CP and KCS shareholders are scheduled to vote on the proposed transaction on Dec. 8 and 10, 2021, respectively.

Canadian Pacific expects a review of the deal by the U.S. Surface Transportation Board to be complete in the fourth quarter of next year.

The U.S. regulator has already approved the use of a voting trust for the transaction that allows KCS shareholders to receive payment after shareholders of both companies approve the deal but before it receives final approval.

Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.

Report an editorial error

Report a technical issue

Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 28/03/24 4:00pm EDT.

SymbolName% changeLast
CP-T
Canadian Pacific Kansas City Ltd
-0.54%119.43
CP-N
Canadian Pacific Kansas City Ltd
-0.33%88.17

Follow related authors and topics

Authors and topics you follow will be added to your personal news feed in Following.

Interact with The Globe