CALGARY — Shares in Canadian Pacific Railway Ltd. were down in early trading after the company announced a deal on the weekend to buy U.S. rival Kansas City Southern for US$25 billion.
CP shares were down C$12.27 at C$462.00 in early trading on the Toronto Stock Exchange.
The railways say the deal will create the first single-owner rail network linking Canada, the United States and Mexico.
The combined company will operate more than 32,100 kilometres of rail in Canada, the U.S. and Mexico.
The merger is expected to face close scrutiny by the Surface Transportation Board, a U.S. federal regulatory agency which must approve the agreement.
The companies say the deal doesn’t require regulatory approvals in Canada or Mexico.
This report by The Canadian Press was first published March 22, 2021.
