Canadian Pacific Railway (CP) says it has completed its acquisition of Kansas City Southern (KSU) and placed the shares of the U.S. railway in a voting trust while the U.S. Surface Transportation Board reviews the deal.
The trust allows Kansas City Southern shareholders to be paid while ensuring the railway operates independently until the U.S. regulator issues a final decision on the deal valued at $31 billion U.S., including the assumption of $3.8 billion U.S. of debt.
With the completion of the acquisition, Kansas City Southern shareholders will receive 2.884 CP Rail shares and $90 U.S. in cash for each Kansas City Southern common share and $37.50 U.S. in cash for each Kansas City Southern preferred share held.
CP Rail said the combination with Kansas City Southern will create the only single-line railroad linking the United States, Mexico and Canada. The Canadian railway expects the U.S. review to be completed in the fourth quarter of next year (2022).
