As Canadian Pacific and CN vie for a merger with Kansas City Southern, the letters of support for both potential transactions continue to pile up at the Surface Transportation Board. On May 10, it was CP’s turn to up its count, as it reported 131 new letters.
“Another 131 stakeholders filed statements with the STB on May, 8, 2021 in support of [our] planned, friendly merger with KCS, bringing the total to close to 550 supporters across the transportation supply chain in North America,” CP said. “The statements follow previous filings with the STB in support of the CP-KCS transaction and those opposing CN’s counterbid for KCS. Customers and other supporters stated they expect the combination of CP and KCS would, among other benefits, invigorate transportation competition, expand access to existing and growing markets and provide new service offerings that would improve transit times and reliability along the Canada-U.S.-Mexico corridor.”
On May, in what CP said is “a critical milestone for the regulatory approval process of the CP-KCS combination,” the STB approved CP’s use of a voting trust for its proposed combination with KCS. “That ruling followed another favorable decision by the STB to review the transaction under the waiver granted to KCS in 2001,” CP added. “In reaching this decision, the STB noted that the two companies once combined would remain the smallest of the Class I carriers.”
CP is seeking STB approval from the STB for the combination, which also remains subject to the approvals of CP and KCS shareholders and other customary closing conditions. The STB review, CP said “is expected to be completed by the middle of 2022.”