The Mexican Federal Economic Competition Commission and the Mexican Federal Telecommunications Institute have given regulatory approval of the proposed merger between Canadian Pacific and Kansas City Southern, both companies announced Friday.
CP (NYSE: CP) and KCS (NYSE: KSU) needed approval from Mexican regulators because KCS has operations in Mexico.
“This important milestone marks the next step on our path to creating the first single-line rail network linking the U.S., Mexico and Canada,” said CP President and CEO Keith Creel in a statement.
KCS President and CEO Pat Ottensmeyer said, “Together we will unlock the full potential of our networks to provide new single-line offerings and industry-best service that will dramatically expand competitive transportation options across North America.”
Industry observers will now be turning their eyes onto U.S. regulators, with the Surface Transportation Board just giving its approval of CP’s and KCS’ merger application. The board will accept testimonies from stakeholders through the first half of 2022, with a possible public hearing and final briefs occurring sometime after July 1. The board would issue its final decision 90 days after the evidentiary record closes.
CP still anticipates STB’s review to be completed sometime in the fourth quarter of 2022.
Also coming up are the shareholder meetings of both companies, in which stockholders will vote on the proposed merger. CP will hold its meeting on Dec. 8 and KCS will hold its meeting on Dec. 10. Those two transactions would close on Dec. 14.
Subscribe to FreightWaves’ e-newsletters and get the latest insights on freight right in your inbox.
Click here for more FreightWaves articles by Joanna Marsh.
Related links:
For full coverage of the CP and KCS situation, click here.
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now