Canadian Pacific and Kansas City Southern Agree to Combine to Create the First U.S.-Mexico-Canada Rail Network

This is from the CP website.

Canadian Pacific Railway Limited (TSX: CP, NYSE: CP) (“CP”) and Kansas City Southern (NYSE: KSU) (“KCS”) today announced they have entered into a merger agreement, under which CP has agreed to acquire KCS in a stock and cash transaction representing an enterprise value of approximately USD$29 billion1, which includes the assumption of $3.8 billion of outstanding KCS debt.

Now the conspiracy theorist in me suggests that perhaps Vena was sent to destroy UP so CP could merge with KCS and dominate the Mexico/US/Canada rail traffic. Then again, maybe CP wanted to merge with UP but UP resisted. Either way, this news is not very good for UP but is great news for KCS.

Reference:
https://www.cpr.ca/en/media/canadian-pacific-and-kansas-city-southern-agree-to-combine-to-create-the-first-us-mexico-canada-rail-network

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26’% will be sold
More $$ for the big boys

I hope UP makes a positive move or this merger doesn’t have a huge negative effect on UP’s business. I don’t like our execs, but I do not want UP to fail. I still work here and would like to make it 10 more years to retirement. If the company craters, our jobs may go away also. For my sake, and my coworkers, I hope UP at least holds onto the current business.

Well UP owns 26% of Ferromex so yeah they have their dirty hands somehow south of the border, so yeah...

Yeah UP might completely crater by then and they can buy it out too

It’s not approved yet. This will take the STB until 2022. A lot can happen in a years time.

I got a domino in the mail that I can put on my keychain. I merged it with my trash can.

Well UP still has the big boy steam engine so I’m sure we are good for the foreseeable future. Also I bought a UP Christmas ornament because I believe in Lance and Santa Claus and miracles.

Wait a minute! Fritzy said he was making the company more competitive. Seeing that article, makes me wonder what he's thinking about right now. It sounds to me like the CP has executives that actually know what they're doing. Hey UP executives, DID YOU GET THAT?

This will be catastrophic to UPs Mexico franchise.

I wish them much success at the expense of Union Pacific.

My bad, I thought Vena came from CP. Being furloughed for 2 years, one tends to not keep up with things.

I didnt see anyone disputing that.

Vena came from CN, not CP.

I can honestly say that I didn't see this one coming. What I can say is that I hope the UP executives finally got their wake up call. Their insatiable push for the ultimate efficiency, is probably going to cost them more than ever expected. Once this merger is finalized, that's going to put UP in a very tight spot with customers. For the past 2.5 years, they've been eliminating jobs, pissing off customers, and shrinking the network to help their bottom line. Well to be one of the best, you have to be one of the biggest. You can't be one of the biggest, if you're one trying to be one of the smallest. A business can't grow, if you keep trimming. So congrats to the UP. I hope this merger gets their attention, and I hope the CP sticks it right up their a55.

I heard UP is either going to merge with Omnitrax or the small choo choo line at the San Diego zoo.

SP merger?

UP may build America while CP/KCS build the western hemisphere.

Thread regarding Union Pacific Corp. layoffs

Canadian Pacific and Kansas City Southern Agree to Combine to Create the First U.S.-Mexico-Canada Rail Network

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