Calgary Alberta - Canadian Pacific Railway Limited (CP) today announced that more than 130 additional stakeholders have filed statements with the Surface Transportation Board (STB) supporting CP's planned, friendly, merger with Kansas City Southern (KCS), bringing the total submitted to date to more than 680.
 
There are also more than 110 letters filed with the STB expressing concern about the Canadian National (CN) proposal.
 
The letters highlight that a combined 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.
 
Last Friday, the Department of Justice (DOJ) filed comments with the STB objecting to CN's proposed use of a voting trust on the grounds that a CN merger with KCS would pose greater risks to competition than the CP/KCS agreement.
 
The DOJ's position is consistent with CP's assessment that CN's proposal is illusory and offers unattainable value to KCS' shareholders.
 
CP remains confident its friendly agreement with KCS is superior to the CN proposal because CP/KCS is the only viable Class 1 merger, as validated by two favorable rulings by the STB.
 
The STB has approved CP's use of a voting trust and affirmed KCS' waiver from the new rail merger rules it adopted in 2001 because a CP/KCS combination is truly end-to-end, pro-competitive, and together they would remain the smallest Class 1 railway.
 
CP is seeking 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 is expected to be completed by the middle of 2022.
 
Author unknown.