Mexican regulators have approved Canadian Pacific’s $31 billion deal to acquire Kansas City Southern, which could create a railroad linking Mexico, Canada and the United States, The Associated Press reported.
The deal includes 2.884 Canadian Pacific shares and $90 in cash for each shareholder, as well as Canadian Pacific assuming $3.8 billion of Kansas City Southern's debt.
“This historic combination will add capacity to the U.S. rail network, create new competitive transportation options, support North American economic growth, and deliver important benefits to customers, employees and the environment,” Canadian Pacific CEO Keith Creel said.
It remains unclear if U.S. regulators will approve the merger.
Canadian Pacific beat out Canadian National’s $33.6 million bid due to the U.S. Surface Transportation Board (STB) declining to approve a part of CN’s bid, according to the AP.
On Friday, both railroads companies said the STB review of their deal is expected to continue into the fourth quarter of 2022, the AP reported.
The reported deal could close by mid-December if both companies’ shareholders approve the deal, the AP noted.