Mexican regulators have agreed to a Canadian Pacific (CP) deal to acquire the US Kansas City Southern (KCS) railroad.
The railways say the deal has received approval from Mexico’s Federal Economic Competition Commission and Mexico’s Federal Institute of Telecommunications.
Calgary-based Canadian Pacific has agreed to buy KCS in a deal valued at US $ 31 billion, including assuming US $ 3.8 billion in debt.
The shareholders of CP and KCS are expected to vote on the proposed transaction on December 8 and 10, 2021, respectively.
Canadian Pacific expects the U.S. Surface Transportation Board’s review of the deal to be completed in the fourth quarter of next year.
The US regulator has already approved the use of a voting trust for the transaction, which will allow KCS shareholders to receive a payment after shareholders of both companies approve the deal, but before it does. receive final approval.
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