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The Kansas City Southern Railway Board of Directors is reconsidering the $27 billion offer from Canadian Pacific, although the company has agreed to sell the company to a competitor after the US regulator rejected the structure of the earlier transaction.
The board of directors of the railway, headquartered in Kansas City, Missouri and operating between the city and Mexico, said on Saturday that the Canadian Pacific’s offer “can reasonably be expected to result in” a $30 billion acquisition of the railway in May than a Canadian national.
Kansas City Southern said it would open its books to Canadian Pacific, but this move does not necessarily lead to a transaction.
Both Canadian railway companies are seeking rare opportunities to expand their business to the United States by snapping up one of the seven major railway companies in North America.Canadian Pacific has previously stated that its rival’s larger offer is Tighter regulatory review The transaction faces.
If National Canada acquires southern Kansas City, this railway will become the third largest railway on the African continent. The cooperation with Canadian Pacific is still the smallest of the remaining six large railway operators.
Last week, the U.S. Ground Transportation Commission, which oversees railroads, ruled that the “voting trust” proposed by Canadian nationals cannot be used. The trust will allow shareholders in southern Kansas City to receive payment before the merger is approved.
Both Canadian nationals and southern Kansas City said they were “disappointed” with the regulator’s decision. National Canada added that the transaction “will strengthen competition” and provide “a new and faster route.”
The cooperation happens on The global supply chain is tight. Shippers are paying high fees to railways, trucks, ships, and air carriers to deliver goods to meet consumer demand.
Canadian Pacific CEO Keith Creel stated that the transaction between his railroad company and Kansas City Southern Company is “the only end-to-end first-level merger that really maintains and enhances competition. This is a perfect combination… For Railway industry and business services in North America”.
Canadian Pacific Previously provided Pay $275 per share and cash for the railroad, but this has been increased to $300 per share.
Southern Kansas City closed at $291.63 on Friday.