On Sunday, two of the largest railroads in North America announced they will be merging. Canadian Pacific Railway has agreed to purchase Kansas City Southern Railroad for $25 billion. The combined company will operate 20,000 miles of rail. It is expected to employ around 20,000 people and is predicted to generate $8.7 billion in annual sales.
The CEO of Canadian Pacific said “The new competition we will inject into the North American transportation market cannot happen soon enough, as the new USMCA Trade Agreement among these three countries makes the efficient integration of the continent’s supply chains more important than ever before.”
The merger will connect freight customers to Canada, the United States, and Mexico for the first time in history. The Surface Transportation Board regulator has to approve the deal in order for it to be finalized. That is expected to take place in mid-2022.
Railroad megamerger would create the first Mexico-US-Canada freight rail network
