Further to last evening’s message, the US Surface Transportation Board (STB) issued its decision on the CP acquisition of KCS earlier this morning. The STB approved the takeover with conditions.
The STB decision states as follows.
Digest:2
The Board approves, with certain conditions, the acquisition of control by Canadian Pacific Railway Limited (Canadian Pacific), through its indirect, wholly owned subsidiary, Cygnus Merger Sub 2 Corporation, of Kansas City Southern, and through it, of The Kansas City Southern Railway Company (KCSR) and its railroad affiliates, and for the resulting common control by Canadian Pacific of its U.S. railroad subsidiaries, and KCSR and its railroad affiliates.
From the Decision Summary
Given the current realities and the limited opportunities to provide meaningful competition for the largest Class I railroads, as outlined above and discussed at length in this decision, the Board concludes that this transaction should improve rather than degrade the performance of the industry. It is for these reasons that the Board approves the merger.
The 212 page STB decision can be accessed by clicking here.
The 11:00 a.m. EDT press conference can be viewed by the public via the Board’s YouTube Channel.
