First CP, now CN.
Canadian National Railway submitted an unsolicited proposal to acquire Kansas City Southern in a cash and stock transaction valued by CN at $33.7 billion, or $325 per KCS share.
On March 21, 2021, KCS announced that it had entered into a merger agreement with Canadian Pacific Railway, a move the railroads said would create the first Canada-to-Mexico rail network. Under the agreement, CP agreed to acquire KCS in a stock and cash transaction valued at $29 billion, or $275 per KCS share, based on the CP and KCS closing prices on March 19.
The transaction is subject to regulatory approvals and the approval of CP and KCS shareholders. The KCS board of directors said it would evaluate CN’s proposal per KCS’s merger agreement with CP.
While remaining the smallest of six U.S. Class 1 railroads by revenue, CP and KCS officials said their combined company would result in a more extensive and more competitive network. If CP and KCS combined, it would operate roughly 20,000 miles of rail, employing close to 20,000 people and generating total revenues of approximately $8.7 billion based on 2020 actual revenues.