Justice Department Urges Regulator to Nix CP Rail Share Swap Ahead of Merger
- Justice Department opposes transaction while rail deal pending
- Agency may seek an active role in proposed $25 billion merger
A Canadian Pacific Railway locomotive moves over a bridge in Calgary, Canada, where the company has its headquarters.
Photographer: Alex Ramadan/BloombergThis article is for subscribers only.
The U.S. Department of Justice urged the regulator that oversees rail mergers to keep Canadian Pacific Railway Ltd. and Kansas City Southern from combining their shares before their proposed merger and said it might intervene further in the review of the deal.
In a letter to the Surface Transportation Board, which oversees U.S. railroads, the Justice Department also called for using the tougher standard adopted in 2001 for mergers in the industry. That standard requires that mergers be in the public benefit and enhance competition.