Mexico City /
Las ferroviarias Kansas City Southern (KCS) s Canadian citizen Today he agreed to enter into a final merger to create the first seamless train between them Mexico, the United States and CanadaWhich would result in a deal of $ 33.6 billion, Historic amalgamation of transportation in the region.
Under this agreement, the shareholders of KCS They will receive $ 325 per share based on the offer made by CN on May 13, which includes a $ 33.6 billion bid, which includes $ 3.8 billion in debt from KCS.
In a statement issued by the two railway companies, it was reported that shareholders in KCS You will receive $ 200 cash and 1,129 regular shares of CN for every ordinary share in KCS, KCS shareholders are expected to own 12.6 percent of the combined company.
This landmark North American railroad deal will be subject to approval by KCS shareholders and approval of the vote fund proposed by CN For merger by the US company Surface Board Transportation.
KCS informed that it will pay Canadian Pacific (CP) $ 700 million, a fee for breaching the merger agreement, since CP is the first bidder to implement the merger with KCS, this amount will be compensated by CN.
Railroad company KCS said it would be obligated to repay this amount in certain limited circumstances, even if KCS terminates the CN merger agreement to accept a higher bid.