The $31 billion U.S. merger of Canadian Pacific Railway (CP) and Kansas City Southern has officially closed following regulatory approval.
The new company, called Canadian Pacific Kansas City, combines the two smallest railways on the continent and creates the only rail company that has access to Canada, the U.S. and Mexico.
Chief Executive Officer (CEO) Keith Creel made the merger official by driving a platinum spike into a piece of railroad track at a ceremony held in Kansas City, Missouri.
The newly combined railroad stretches from Vancouver, British Columbia to Saint John, New Brunswick, down to Kansas City, New Orleans, and Mexico City, reaching both the Gulf of Mexico and the Pacific Ocean on the U.S. west coast.
In all, the merged company operates nearly 33,000 kilometres of rail track and employs 20,000 people. It is the first rail merger in North America to be completed in more than two decades.
The new company is expected to have higher cargo volumes and faster transportation times.
Speaking at the ceremony, Creel said that grain, lumber, and shipping containers are key areas for growth of Canadian Pacific Kansas City.
Canadian Pacific Kansas City has begun construction on a new rail yard for its U.S. operations in Kansas City, though its headquarters will remain in Calgary, Alberta.
Shares of Canadian Pacific Kansas City will begin trading on the Toronto and New York Stock Exchanges under the ticker symbol “CPKC” on April 18.
