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Feds approve first major railroad merger in two decades

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The U.S. Surface Transportation Board signed off on Canadian Pacific's $31 billion acquisition of Kansas City Southern.

Federal regulators have approved the first major railroad merger in more than 20 years, signing off on Canadian Pacific's $31 billion acquisition of Kansas City Southern.

The U.S. Surface Transportation Board said the merger will improve the flow of goods – from Midwest grain to cars – between the U.S. and Mexico.Regulators said the only major impact of the deal would be more noise and train traffic in places like Chicago, potentially delaying regular commuter traffic on Metra lines.

"As communities, we're left kind of holding the bag a bit with trying to deal with the onslaught of traffic, and the noise, and the things that come with it; and that's what's ahead of them. So I feel for them," said Karen Darch, village president in northwest suburban Barrington.

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Transportation board approves railroad merger between Canadian Pacific, Kansas City SouthernThe U.S. Surface Transportation Board has approved a controversial CP merger with KCS, opposed by multiple suburbs but with conditions.
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