Canadian Pacific Railway’s (CP) $27 billion U.S. takeover of Kansas City Southern (KSU) will be finalized on April 14 of this year following regulatory approval of the deal.
The combined companies will create the only railway with operations that span all of North America – the U.S., Mexico, and Canada.
The takeover of Kansas City Southern is on track to be completed in April after the U.S. Surface Transportation Board approved the sale in recent days.
CP Rail has announced the executive leadership of the new company, which will be called Canadian Pacific Kansas City.
Keith Creel, the current president and chief executive officer (CEO) of CP Rail, will become the new CEO of the combined railroads.
Kansas City Southern’s president and CEO Pat Ottensmeyer will serve as an advisor to Creel for the remainder of this year.
The new railway company will be headquartered in Calgary, Alberta.
CP Rail’s stock has declined 4% over the past year to trade at $77.29 U.S. per share in New York. Kansas City Southern’s stock has rallied 54% in the last 12 months to reach $293.59 U.S. a share.