Canadian Pacific and Kansas City Southern agree to combine to create the first U.S.-Mexico-Canada Rail Network
Canadian Pacific Railway Limited (“CP”) and Kansas City Southern (“KCS”) 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 billion, which includes the assumption of $3.8 billion of outstanding KCS debt. The transaction, which has the unanimous support of both boards of directors, values KCS at $275 per share, representing a 23% premium, based on the CP and KCS closing prices on March 19, 2021 (and $270 per share, representing a 26% premium3, based on the respective CP and KCS 30-day volume weighted average prices (“VWAP”)).