‘Ready to roll’: CP Rail preparing for KCS merger, ruling expected within weeks | Globalnews.ca

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‘Ready to roll’: CP Rail preparing for KCS merger, ruling expected within weeks

If the STB gives the go-ahead, the merged railway will be named Canadian Pacific Kansas City . Creel will be CEO, and Calgary will serve as global headquarters for the new entity. Kansas City, Mo., will be the U.S. headquarters, and the Mexican headquarters will be in Mexico City and Monterrey.

While CPKC will remain the smallest of six large railways operating in the U.S. by revenue, it will operate nearly 33,000 kilometres of rail — extending from Canada, into the U.S. and all the way to Mexico — and employ nearly 20,000 people. “I can’t get ahead of the STB. The STB is the authority here and we need their stamp of approval,” Creel said, adding if the decision goes CP’s way, the company plans to host an investor day in June to provide more details about the future of the merged railroad.“I do think that our facts are very strong and it’s a very compelling value creation for all stakeholders and enables growth and all the things that we have said all along … but ultimately, they have to decide.

However, KCS renewed its support for CP and its bid later on after the U.S. transportation regulator denied CN’s use of a voting trust for KCS, saying it would be bad for competition.

 

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