Kansas City Southern de Mexico

Surface Transportation Board OKs CP-KCS merger application, sets schedule

A composite image consisting of two photographs. On the left is a Kansas City Southern locomotive and on the right is a Canadian Pacific locomotive.

The Surface Transportation Board has decided that the merger application between Canadian Pacific and Kansas City Southern can proceed as submitted, saying that the application “is complete as it contains all information required by the Board’s regulations.”

STB’s decision includes a procedural schedule for comments, responsive applications, final briefs and other filings. Notices of intent to participate are due by Dec. 13, and any public hearing would occur after the filing of final briefs,...

https://www.freightwaves.com/news/surface-transportation-board-oks-cp-kcs-merger-application-sets-schedule

Union Pacific wants STB to put CP-KCS merger application on ice

A photograph of two Union Pacific locomotives.

Union Pacific wants the Surface Transportation Board to reject a merger application of Canadian Pacific and Kansas City Southern for now, calling the application “incomplete.” But CP has fired back at UP’s and other rails’ support for extending the merger proceeding timeline.

UP (NYSE: UNP) says the merger application doesn’t have all the information needed to satisfy market analysis and operational data requirements. The company is asking the board to require CP (NYSE: CP) and KCS (NYSE: KSU)...

https://www.freightwaves.com/news/union-pacific-wants-stb-to-put-cp-kcs-merger-application-on-ice

CP and KCS file merger application, CN adds board member

A composite image consisting of two photographs of train locomotives.

Canadian Pacific and Kansas City Southern have submitted a joint application to the Surface Transportation Board to merge both railroads.

The combined network of both railroads would reach Canada, the United States and Mexico, creating a “single-line railroad,” the companies said in a release late Friday. 

CP (NYSE: CP) and KCS (NYSE: KSU) say the application includes an overview of the proposed operational integration of both companies’ railroads, the impacts a merger would have on finances and...

https://www.freightwaves.com/news/cp-and-kcs-file-merger-application-cn-adds-board-member

Kansas City Southern suspends earnings guidance amid uncertainties

A photograph of a Kansas City Southern locommotive traveling across a grassy field.A

Kansas City Southern is refraining from adjusting its earnings guidance for the year amid uncertainties over the global chip shortage and teacher protests and supply chain disruptions for refined fuel products in Mexico. 

“We’re the first to admit that the visibility on the commercial side is limited,” KCS (NYSE: KSU) President and CEO Pat Ottensmeyer told investors during the company’s third-quarter 2021 earnings call Tuesday morning. 

KCS had said in January that it was anticipating...

https://www.freightwaves.com/news/kansas-city-southern-suspends-earnings-guidance-amid-uncertainties

Kansas City Southern to utilize Commtrex’s transloading platform

Kansas City Southern will be using freight data supplier Commtrex’s platform to increase visibility and connectivity within KCS’ transload facility in the U.S. and Mexico.

The more than 100 transload facilities in 19 U.S. and Mexican states handle food and agricultural commodities, as well as bulk materials, chemicals, paper and forest products, and steel and other metals.

KCS (NYSE: KSU) says the arrangement will help it manage supply chain constraints as well as prepare for growing trade among...

https://www.freightwaves.com/news/kansas-city-southern-to-utilize-commtrexs-transloading-platform

KCS, CP outline growth opportunities post-merger

A photograph of a Kansas City Southern train.

With the love triangle between Kansas City Southern, CN and Canadian Pacific behind them, KCS and CP are forging ahead with seeking opportunities to expand service and volumes for intermodal and automotive and grain volumes, among others.

A single-line service from the Great Lakes and into Mexico and Canada could untap investment and attract manufacturers, said KCS President and CEO Pat Ottensmeyer, who was joined by CP President and CEO Keith Creel in a call Thursday morning to discuss the...

https://www.freightwaves.com/news/kcs-cp-outline-growth-opportunities-post-merger

KCS agrees to merge with CP, nixes plans with CN

A composite image consisting of two photographs. On the left is a Kansas City Southern locomotive and on the right is a Canadian Pacific locomotive.

The love triangle appears to have ended: Kansas City Southern has terminated plans to merge with Canadian railway CN and has agreed to merge with rival suitor Canadian Pacific.

CP and KCS confirmed Wednesday that they have entered into a merger agreement, in which CP will acquire KCS in a stock and cash transaction worth $31 billion. The deal values KCS at $300 per share.  

The two expect that the Surface Transportation Board will complete its review of the merger sometime in the second half of...

https://www.freightwaves.com/news/kcs-agrees-to-merge-with-cp-nixes-plans-with-cn

KCS declares Canadian Pacific’s merger offer as ‘superior’

A photograph of a Kansas City Southern train hauling intermodal containers.

Kansas City Southern’s board of directors confirmed that it has declared Canadian Pacific’s bid to acquire KCS as “superior,” thus diminishing the prospects of an acquisition by rival CN.

“The KCS Board of Directors determined that CP’s revised proposal constitutes a ‘Company Superior Proposal’ as defined in KCS’s merger agreement with Canadian National Railway,” KCS said Sunday. “The KCS Board of Directors made this determination after consultation with the company’s outside legal and financial...

https://www.freightwaves.com/news/kcs-declares-canadian-pacifics-merger-offer-as-superior

Canadian Pacific submits revised offer to acquire Kansas City Southern

A photograph of a Kansas City Southern train.

This story is developing.

Canadian Pacific has revised its offer to acquire Kansas City Southern ahead of a shareholder meeting in which KCS shareholders would have to confirm their desire to merge with CP rival CN.

CP (NYSE: CP) is offering a stock-and-cash “superior proposal” worth an estimated US$31 billion. The proposal, which has received the unanimous support of CP’s Board of Directors, values KCS (NYSE: KCS) at $300 per share. KCS shareholders would receive 2.884 CP common shares and $90...

https://www.freightwaves.com/news/canadian-pacific-submits-revised-offer-to-acquire-kansas-city-southern

Kansas City Southern expects strong market for rail in second half of 2021

A photograph of a Kansas City Southern train.

Kansas City Southern still anticipates double-digit revenue growth for 2021 amid favorable macroeconomic indicators, executives said during its second-quarter 2021 earnings call on Friday.

But KCS (NYSE: KSU) adjusted its 2021 target operating ratio to about 60% from earlier guidance of 57.5% amid uncertainty surrounding automotive production and disruptions of getting refined products into Mexico, among other issues. Operating ratio is a tool investors sometimes use to gauge the financial...

https://www.freightwaves.com/news/kansas-city-southern-expects-strong-market-for-rail-in-second-half-of-2021

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