(Calgary) Canadian Pacific Railway said on Tuesday that it received regulatory approval from the Committee on Foreign Investment in the United States (CFIUS) for its acquisition of Kansas City Southern (KCS).
Posted at 10:47 a.m.
Canadian Pacific agreed last year to buy KCS in a deal valued at US$31.0 billion, including the assumption of US3.8 billion in debt.
The deal still needs to be approved by the US Surface Transportation Board, the board responsible for surface transportation.
The deal closed in December, but the KCS shares were placed in a voting trust that allows the U.S. railroad to operate independently while the Surface Transportation Board completes its review.
Canadian Pacific says it expects that review to be completed early next year.
The combination of companies would create the only single-line railroad linking the United States, Mexico and Canada.