Tuesday, June 18, 2024

CN offers $ 33.7 billion to merge with KCS

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Maria Gill
Maria Gill
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(Montreal) Canada’s National Railways (CN) announced Tuesday that it has bid to merge with Kansas City Southern (KCS) in a $ 33.7 billion stock and cash deal, or $ 325 per share.

Jean-Philippe Denoncourt
The Canadian Press

Canadian National clarifies that under this deal, it will construct with KCS the first railway line of 21e The century that will seamlessly connect the ports and rail networks in the United States, Mexico and Canada

Under the terms of the proposal submitted to the KCS Board of Directors, the shareholders of the US carrier will receive $ 200 in cash and 1,059 CN ordinary shares for every ordinary share of KCS, after the KCS agreement closes. Voting Box.

Canadian Pacific Railway recently submitted a $ 25 billion bid for Kansas City Southern. CN reported that its bid was a 21% increase over the current value of the deal with Canadian Pacific.

Jean-Jacques Roest, President and CEO of Canadian National, says the CN is in an ideal position to form a company with KCS of increased reach and scale, especially because their networks are so complementary and have little overlap.

The Montreal-based carrier is seizing the opportunity to say this rail network will reduce road congestion and prevent thousands of tons of greenhouse gases being emitted into the atmosphere every day.

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