The merger of KCS-CN will create the first railway network between Canada, the United States and Mexico

The CN-KCS merger, if approved, would combine approximately 32,000 kilometers of the CN route through Canada to the Gulf of Mexico with the 11,000-kilometer KCS railway network, linking farms in the US Midwest with Mexico.

US railroad companies, Kansas City Southern, in the US, and Canada National (CN), on Friday announced a merger agreement aimed at creating the first train to connect Canada, the United States and Mexico.

The CN-KCS merger, if approved, would combine approximately 32,000 kilometers of the CN route through Canada to the Gulf of Mexico with the 11,000-kilometer KCS railway network, linking farms in the US Midwest with Mexico.

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According to a joint statement, the agreement was approved unanimously by the boards of the two companies.

Canada’s largest shipping company offered $ 33.6 billion to KCS, topping the $ 29 billion bid from rival Canadian Pacific (CP).

The Montreal-based company also sought to prevent CP, which announced a deal with KCS in March, from establishing itself in the United States.

“We are pleased with this merger with CN,” KCS President Patrick Utensmeier said in a statement.

“We are delighted that KCS has agreed to join forces with CN to create the first railway line in the 21st century,” said Jean-Jacques Roest, Director of CN.

The merger has not yet been approved by KCS shareholders or regulatory authorities in the US and Mexico and could take at least a year, depending on the companies.

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Expressing doubts that the CN-KCS merger will receive the necessary regulatory approvals, CP declined to bid on competitor CN.

However, he said he was “prepared to re-engage with KCS” if the CN acquisition fails.

Sacha Woodward

"Wannabe writer. Lifelong problem solver. Gamer. Incurable web guru. Professional music lover."

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