• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
Computer Business World News

Computer Business World News

Trending News about Computers, Business and Tech

  • Home
  • BUSINESS
  • CAREERS
  • CLOUD
  • COMPUTERS
  • CYBERSECURITY
  • I.T.
  • TECH
  • VOIP
  • About

Canadian National Railway Outbids Rival for Kansas City Southern

by

The railroad barons are at it again.

Canadian National Railway on Tuesday offered to buy Kansas City Southern for $33.7 billion, topping a $29 billion bid put forward last month by a rival railroad operator, Canadian Pacific.

The competing offers underline the riches expected to come from trade flows after the United States-Mexico-Canada Agreement was passed into law last year. A merger with either suitor would create a railroad line that stretches from Canada to Mexico. In the already consolidated railroad industry, few lines are left to bid on — let alone deals that will be approved by regulators.

Canadian National said in a letter to Kansas City board that the company had spent “considerable time and resources analyzing a potential combination of our two companies.” It argues its offer represents “an unparalleled opportunity to create a premier railway for the 21st century.”

The offer gives Kansas City Southern a valuation 21 percent higher than Canadian Pacific’s bid, which had been agreed on by the companies’ boards.

For Canadian National, the proposal would be a chance to stop its smaller domestic competitor from gaining significant scale. Unlike Canadian Pacific, Canadian National already has track agreements extending to the Gulf of Mexico.

The rival bid is one further challenge to Canadian Pacific’s offer, which was already facing regulatory scrutiny. The U.S. Department of Justice has urged the Surface Transportation Board — which must approve the offer — to examine the deal under tough industry guidelines put in place in 2001 and expressed concern over its use of a voting trust that would it allow it close the deal even before getting regulatory approval.

Canadian Pacific has argued that there should be no regulatory trouble, given the two railroads have no overlap and in some cases create new markets. It said its smaller size compared with other major North American railroads should exempt it from the guidelines.

View Source

Filed Under: BUSINESS, TECH Tagged With: Canadian National Railway Company, Canadian Pacific Railway Ltd, Kansas City Southern, Mergers, Acquisitions and Divestitures, Railroads, Regulation and Deregulation of Industry

Primary Sidebar

More to See

Wholesale Call Termination Providers: The #1 Way to Revolutionize Your Business-My Country Mobile

Wholesale Call Termination Providers: The #1 Way to Revolutionize Your Business-My Country Mobile

Effective communication is an essential aspect of any successful business, and in today’s digital age, it is more important than ever to have reliable … [Read More...] about Wholesale Call Termination Providers: The #1 Way to Revolutionize Your Business-My Country Mobile

What Is An AAE File? Everything You Need to Know About .aae File

What Is An AAE File? Everything You Need to Know About .aae File

Many of us may have received an email containing an AAE file attachment. The file type usually leaves the computers puzzled. How to handle it is not … [Read More...] about What Is An AAE File? Everything You Need to Know About .aae File

Microsoft Surface Laptop Studio 2 and Laptop Go 3: how to preorder

Microsoft Surface Laptop Studio 2 and Laptop Go 3: how to preorder

Although the forthcoming laptops look similar in design to their predecessors, the new Surface devices arrive with upgraded processors, better battery … [Read More...] about Microsoft Surface Laptop Studio 2 and Laptop Go 3: how to preorder

Footer

SITE INFORMATION

COMPUTER BUSINESS WORLD NEWS

About/Contact

Privacy Policy

Thank you for visiting our website.

Recent

  • National Information Technology and Business Process Management Week to kick off in October – Breaking News
  • Wholesale Call Termination Providers: The #1 Way to Revolutionize Your Business-My Country Mobile
  • What Is An AAE File? Everything You Need to Know About .aae File

Search

Copyright © 2023 Computer Business World

Terms and Conditions - Privacy Policy