Canadian Pacific Railway to buy Kansas City Southern

Interesting.

Should go thru the Regulatory Process within a year. This is basically an end to end merger.

Couple of questions on my end?

What do other railroads think of it? To be determined.
Does Minnesota make sense as an operational center for the combined system?
Will Bensenville Yard become more important to the combined system?
 
If the combined railroad has a new name, does that mean new branding . . . and the additional toppling of CP's flag, replaced by that of 'CPKC'? Or would CP end up still existing?
 
Interesting.

Should go thru the Regulatory Process within a year. This is basically an end to end merger.

Couple of questions on my end?

What do other railroads think of it??

Considering their History, of trying and failing, to purchace or take-over other US railroads, I would guess the "other railroads" do not look favoribly on this merger.
2000-ish, CP tried to buy BNSF - US Government says NO.
2014-ish, CP tries to buy CSX - Fails
2016-ish, CP tries to "hostile take-over" Norfolk Southern - FAILS

Canadians looking Desperate to get a US foothold.
 
Well, it is about time. Those CPs have been in the USA long time now. Get a move on, get... get.
 
I might be wrong on assumptions here......

I live in So Cal, USA where we have very busy Ports, and Covid is messing with unloading our Ships....Because of Protocol......But now there is another Fly in the Ointment so to speak......:(

https://abcnews.go.com/International/wireStory/suez-canal-remains-blocked-amid-efforts-free-stuck-76719333

SUEZ, Egypt -- A giant container ship remained stuck sideways in Egypt’s Suez Canal for a fifth day Saturday, as authorities made new attempts to free the vessel and reopen a crucial waterway whose blockage is disrupting global shipping and trade.

And:

"Considering their History, of trying and failing, to purchase or take-over other US railroads, I would guess the "other railroads" do not look favorably on this merger."
"2000-ish, CP tried to buy BNSF - US Government says NO."
"2014-ish, CP tries to buy CSX - Fails"
"2016-ish, CP tries to "hostile take-over" Norfolk Southern - FAILS"

And I can think of some other Mergers that didn't work out too :hehe: ........This CN-KC should be interesting to watch.........(I also wonder with Rail Traffic down due to Covid) if this was prime time to Purchase at a better price? ;)


Be interesting to see how this effects our Land Bridge with both Coasts, and how this Merger thing with CN and KCS works out going North to South......Bit of a Mulligan Stew, and lots of opportunity if Railroads get there act together, RE Precision Scheduling......Of which I am not sold on at all, from what I hear, Maintenance and other issues may not be what they should be........

Nothing is perfect in Life, however that is what your lead to believe in some things....
 
I might be wrong on assumptions here......

I live in So Cal, USA where we have very busy Ports, and Covid is messing with unloading our Ships....Because of Protocol......But now there is another Fly in the Ointment so to speak......:(

https://abcnews.go.com/International/wireStory/suez-canal-remains-blocked-amid-efforts-free-stuck-76719333

SUEZ, Egypt -- A giant container ship remained stuck sideways in Egypt’s Suez Canal for a fifth day Saturday, as authorities made new attempts to free the vessel and reopen a crucial waterway whose blockage is disrupting global shipping and trade.

And:

"Considering their History, of trying and failing, to purchase or take-over other US railroads, I would guess the "other railroads" do not look favorably on this merger."
"2000-ish, CP tried to buy BNSF - US Government says NO."
"2014-ish, CP tries to buy CSX - Fails"
"2016-ish, CP tries to "hostile take-over" Norfolk Southern - FAILS"

And I can think of some other Mergers that didn't work out too :hehe: ........This CN-KC should be interesting to watch.........(I also wonder with Rail Traffic down due to Covid) if this was prime time to Purchase at a better price? ;)


Be interesting to see how this effects our Land Bridge with both Coasts, and how this Merger thing with CN and KCS works out going North to South......Bit of a Mulligan Stew, and lots of opportunity if Railroads get there act together, RE Precision Scheduling......Of which I am not sold on at all, from what I hear, Maintenance and other issues may not be what they should be........

Nothing is perfect in Life, however that is what your lead to believe in some things....

Good thoughts on this. The CP did own the Delaware and Hudson at one point and sold that to Norfolk Southern a few years ago, and also bought out their share completely in the SOO quite a number of decades ago as well as purchasing the DM&E. Today, the CN owns the MMQ, or whatever they call themselves these days, along with the IC as well as the EJ&E now and the Wisconsin Central. It's not like they can't purchase rail lines in the US, it probably depends upon who the players are.

Even with COVID-19, the railroads are doing okay because so much stuff is shipped. The freight they are seeing a drop off in include construction materials, coal, and petroleum, but container traffic is up. I agree that the port traffic may see a falloff due to the Suez Canal, but how much of that goes to Port of LA and not Europe and the eastern US ports? At any rate, the canal traffic blockage is going to hurt the economy worldwide because the delays not only due to the ships needing to reroute around the Cape of Good Hope, but also due to the delay initially in getting ships rerouted.
 
I believe that it was CN that wanted to merge with BN

CSXT wasn't interested in merger with CP or NS.

I don't think there will be a name change on CP's side and I think this merger will go thru depending on opposition from other railroads.
 
I believe that it was CN that wanted to merge with BN

CSXT wasn't interested in merger with CP or NS.

I don't think there will be a name change on CP's side and I think this merger will go thru depending on opposition from other railroads.

So, what I've heard recently on a daily radio business report was that previous mergers and takeover attempts all had significant regulatory issues and apparently, this one doesn't and that management of both railways are optimistic it will pass muster.

Second, There is almost no overlap in service and the resultant entity would not have any duplication to be dealt with.

Third, KSC is the smallest Class 1 RR in NA. CP is the second smallest Class 1 RR in NA. Together, they would still be the smallest Class 1 RR in NA. -- But, they would be the only single-source railway to service three countries.

Finally, I've heard -- and I hope its true -- that both railways will retain their names.

Source: CIBC Wood Gundy Business Report on CKUA
 
There's a part of me that really wishes that they would keep CP's all red colour scheme and call the new line "KCCP" ... :p
 
Finally, I've heard -- and I hope its true -- that both railways will retain their names.

That Would be cool, A dual monarchy of sorts. Both roads keeping there paint schemes but working as one. Would be hell on the paint department but if BNSF can keep all there various schemes (albeit when they repaint they do so to the most up to date one) around, I'm sure they could keep 2 going. Am kind of sad to see KSC go, always felt like the plucky underdog of the class 1's, being one of the few graingers to survive the Rise of the truck and loss of the branch line grain trains with the move to large grain elevators
 
Update from yesterday's morning CIBC Business Report:

Apparently, KCS has withdrawn from the CP-KCS merger agreement to explore Canadian National's higher offer (30% higher, I think). This withdrawal comes with a $700million penalty to be paid to CP Rail. (Ouch!). That's a big chance KCS is taking considering the there are supposedly some serious regulatory hurdles to overcome with a CN-KCS takeover/merger that didn't exist with the CP-KCS deal. Wow! $700 million to take a chance on a deal that may or may not pass muster.

But, if CN cannot get it's voting trust (whatever that is) approved by May 31, it must pay KCS $1Billion USD. Wow, again! That is a f-ton of money flying around that table!

So, ultimately, whether a deal is done or not, CN has indirectly handed over $700Million USD to it's rival CP in Canada.

Wish I could find me someone to pay me that much to walk away from a deal... :cool:
 
Oh boy, can't wait to see Canadian locomotives in Texas.... :|

Seriously though, why a merger? We've had enough of those! It was sad enough when we lost CNW, ATSF, BN and SP!
 
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