Canadian National has offered $ 33.7 billion in cash and shares to acquire the largest network among the three countries.
It was learned Tuesday that Canadian National Railroad Transportation Company had offered $ 33.7 billion in cash and shares to acquire US firm Kansas City Southern (KCS), overtaking an offer from its Canadian Pacific rival.
“The merger will lead to the creation of the first railway line in the 21st century that will connect ports in the United States, Canada, and Mexico To facilitate trade and economic prosperity in North America, ”the Canadian National (CN) said in a press release.
Based in Montreal, Canada’s largest shipping company is trying to block a previous bid from rival Canadian Pacific (CP), which offered $ 29 billion in cash and shares to take over KCS.
Both bids take into account the acquisition of KCS’s 3.8 billion debt.
The KCS Board of Directors approved the CP proposal, but it has not yet been approved by the US shareholders and regulator.
CN offers $ 325 per share of KCS, partly in cash and partly in bonds.
“The CN and KCS networks are very complementary to each other and there is little or no overlap,” said Jean-Jacques Roest, CEO of Canadian National, which has routes to Canada and the United States from the Great Lakes to the Gulf of Mexico.
According to a CN bid, KCS shareholders will own 12% of the share capital of the Canadian company, compared to the 25% that Canadian Pacific provided a month ago. (I)