Deals
K.C. Southern Agrees to $30 Billion CN Rail Deal, Jilting CP
- Move comes after Canadian Pacific declines to boost offer
- Focus shifts to regulator’s review of Canadian National’s plan
A Canadian National Railway locomotive pulls a train in Montreal last month.
Photographer: Christinne Muschi/BloombergThis article is for subscribers only.
Kansas City Southern agreed to a $30 billion merger with Canadian National Railway Co., scrapping a $25 billion deal with Canadian Pacific Railway Ltd. after it declined to boost its offer.
Under the deal, Canadian National will pay $200 and 1.129 shares of its stock for each share of Kansas City Southern, the U.S. railroad said in a statement Friday. Kansas City Southern paid a $700 million breakup fee to Canadian Pacific, which will be reimbursed by Canadian National.