Canadian Pacific buying Kansas City Southern?

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Cal

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Anyone hear about this? I sure haven't

 

Palmetto

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I believe the reality is that CP would like to buy; it has not yet bought. There are quite a few hurdles to jump for CP if this is to come to pass. I imagine the big four US railroads will have a lot to say against this with the STB.
 

railiner

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I believe the reality is that CP would like to buy; it has not yet bought. There are quite a few hurdles to jump for CP if this is to come to pass. I imagine the big four US railroads will have a lot to say against this with the STB.
I don't really see much difference with this, and when the CN bought the Illinois Central....
 

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It will be interesting to see if this announcement (which has been rumored before) triggers a bidding war, given the close working relationship KCS has with both Union Pacific and BNSF. I would assume the Mexican government would also have a say...
 

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jis

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I think the potential anti-trust jeopardy on this one is much smaller than the CN-BNSF one, since it does not really remove competition in a huge way in any large area.

The major route of potential interest to Amtrak that is involved in this is the KCS Meridian Raceway which at one time had been proposed as the route of the so called Crescent-Star a section of the Crescent running from Meridian MS to Dallas/Fort Worth TX.
 

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jiml

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The major route of potential interest to Amtrak that is involved in this is the KCS Meridian Raceway which at one time had been proposed as the route of the so called Crescent-Star a section of the Crescent running from Meridian MS to Dallas/Fort Worth TX.
I recall that reference/suggestion in another thread. Very interesting. Does Amtrak's lack of any KCS participation vs. their relationship with CP make passenger service any more likely? The report card showing CP's performance with current services certainly makes them look like an ideal partner moving forward.
 

jis

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I recall that reference/suggestion in another thread. Very interesting. Does Amtrak's lack of any KCS participation vs. their relationship with CP make passenger service any more likely? The report card showing CP's performance with current services certainly makes them look like an ideal partner moving forward.
It was in the Crescent PIP AFAIR.

Theoretically CP ownership should make it easier to negotiate. Heck Amtrak and RPA should campaign for requiring such access as a condition for allowing the merger if they are upto it. I am shooting off an email to Jim Matthews.
 

jiml

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This went from being a footnote on some railway pages to headline news in very short order. Although most are behind paywalls, there's coverage on every major Canadian paper, the WSJ and several internet services. Does anyone think BNSF or UP blinked on this one and missed an opportunity?
 

jis

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I think BNSF or UP would have faced a much much higher anti-trust hurdle (possibly UP even more so than BNSF), possibly even an insurmountable, on this one.
 

Cal

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It seems official, CP announced it on their Instagram.

"Today we have entered into a merger agreement with Kansas City Southern that would join two historic railroads to create the first rail network connecting the U.S, Mexico and Canada. More information at the link in our bio."
 

jiml

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From CNN:
Despite the large purchase price, the combined company, which would be called Canadian Pacific Kansas City, wouldn't climb the rankings of the largest of the top-tier railroads: It would remain No. 6 in the United States by revenue.
Still, the companies are predicting a potential antitrust fight. To win approval, they noted in their joint statement that the deal wouldn't remove any independent railroad competition from the market, since the two combining companies serve different geographies.
 

jiml

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I’m gonna guess this has something to do with the keystone pipeline cancellation.
You wouldn't be wrong. Take a look at this comprehensive article in Railway Age and resource transportation is one of many "business flow" patterns in play. This thing is starting to make more sense the deeper one digs.

 

jiml

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The new railway will be called CPKC. They should have retained the "S" on the end, so at least they could beat BNSF for longest acronym.;)

Here's hoping CP ditches the red paint and keeps KCS' classy scheme system-wide. Also hoping they retain this:
1905885080998510903851.jpg
 
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