Nov 25, 2021 1:05 PM

Canadian Pacific's $31B rail deal moves on down the line

Posted Nov 25, 2021 1:05 PM

KANSAS CITY, Mo. (AP) — Federal regulators have cleared a path to consider Canadian Pacific's $31 billion acquisition of Kansas City Southern railroad.

The U.S. Surface Transportation Board decided that Canadian Pacific's merger application is complete, dismissing concerns from other railroads. The board also laid out a schedule for its review of the deal that will stretch at least through next July but could be extended.

Kansas City Southern shareholders will be set to get paid once investors of both railroads vote on the deal next month and Mexican regulators sign off on it. But the STB will have the final say on whether the deal can be completed once it finishes its review.