14.04.2023 14:02:18

CP, KSC Merge To Form Canadian Pacific Kansas City To Connect Canada, US, Mexico

(RTTNews) - Canadian Pacific Railway Limited (CP, CP.TO) and Kansas City Southern or KCS, a transportation holding firm, said on Friday that they combined to create Canadian Pacific Kansas City or CPKC to form first single-line railway connecting Canada, the U.S., and Mexico.

The full integration of CP and KCS is expected to be completed over the next three years.

CPKC has filed articles of amendment changing the company's name to "Canadian Pacific Kansas City Limited", which became effective on April 14.

CPKC's shares will remain listed on the Toronto Stock Exchange and New York Stock Exchange under the ticker symbol "CP" and are expected to begin trading under the new name and new CUSIP (13646K108) on April 18.

With its headquarters in Calgary, Canada, CPKC is now operating around 20,000 miles of rail, and employing close to 20,000 people.

CP had acquired KCS for $31 billion in 2021. Upon the completion of the acquisition, shares of KCS were placed into a voting trust, which ensured KCS to operate independently of CP during the regulatory review process.

On April 14, pursuant to the U.S. Surface Transportation Board's recent final decision approving the transaction, the voting trustee transferred the KCS shares to an affiliate of CP, formally bringing KCS into the CPKC family.

CPKC plans capital investments of over $275 million in new infrastructure over the next three years aiming to improve rail safety and the capacity of the core north-south CPKC main line between the U.S. Upper Midwest and Louisiana.

The new CPKC intermodal services will divert 64,000 long-haul truck shipments to rail annually. This will reduce total truck vehicle miles traveled by almost 2 billion miles over the next two decades, saving $750 million in highway maintenance costs.

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