Acquirer: Canadian Pacific Railway Limited (Canada)
Acquired: Kansas City Southern (US)
Value: US$29 billion
Industries: Transportation; Infrastructure; Railway
Update: On August 16, 2022, Canadian Pacific Railway Limited (TSX: CP; NYSE: CP) announced that “it has received the required regulatory clearance from the Committee on Foreign Investment in the United States (“CFIUS”) for the proposed combination of [Canadian Pacific Railway] and Kansas City Southern.” (Press Release, Canadian Pacific and Kansas City Southern merger proposal receives clearance from Committee on Foreign Investment in the United States, Aug. 16, 2022.)
On March 21, 2021, Canadian Pacific Railway Limited, a publicly traded (TSX: CP, NYSE: CP) (“CP”) railway operator in “Canada and the United States with direct links to major ports on the west and east coasts,” entered into a merger agreement with publicly traded Kansas City Southern (NYSE: KSU), under which Canadian Pacific Railway will acquire Kansas City Southern “in a stock and cash transaction representing an enterprise value of approximately USD$29 billion . . . .” (Press Release, Kansas City Southern, Form 8-K, Ex-99.1, Mar. 22, 2021, SEC Filing.) The parties have agreed to notify CFIUS of the agreement and file with CFIUS “in no event later than 10 Business Days after the Closing . . . .” (Section 5.8(b), Agreement and Plan of Merger, Kansas City Southern, Form 8-K, Ex-2.1, Mar. 22, 2021, SEC Filing.)
Please contact Peter Alfano with any questions.