An eastbound Canadian Pacific Railway train waits in Field, B.C., for the line to be cleared, on Monday, Feb. 4, 2019. Canadian Pacific Railway Ltd. says it has completed its acquisition of Kansas City Southern and placed shares of the U.S. railway in a voting trust while the U.S. Surface Transportation Board reviews the deal.THE CANADIAN PRESS/Jeff McIntosh

Canadian Pacific closes Kansas City Southern acquisition deal, shares placed in trust

Canadian Pacific closes Kansas City Southern acquisition deal, shares placed in trust

CALGARY — Canadian Pacific Railway Ltd. says it has completed its acquisition of Kansas City Southern and placed the shares of the U.S. railway in a voting trust while the U.S. Surface Transportation Board reviews the deal.

The trust allows KCS shareholders to be paid while ensuring the railway operates independently until the U.S. regulator issues its decision on the deal valued at US$31 billion, including the assumption of US$3.8 billion of debt.

With the completion of the acquisition, KCS shareholders will receive 2.884 CP shares and US$90 in cash for each KCS common share held and US$37.50 in cash for each KCS preferred share held.

CP said the combination with KCS will create the only single-line railroad linking the United States, Mexico and Canada.

The Canadian railway expects the review by the STB to be completed in the fourth quarter of next year.

It said the expected benefits from the combination will not be realized until the U.S. regulator approves the deal.

This report by The Canadian Press was first published Dec. 14, 2021.

Companies in this story: (TSX:CP)

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