CP quits Norfolk Southern merger bid

by MM&D Online Staff

CALGARY, Alberta—Canadian Pacific Railway Ltd announced it has terminated efforts to merge with Norfolk Southern Corp (NS), including the withdrawal of a resolution asking NS shareholders to vote in favour of good-faith negotiations between the two companies.

No further financial offers or overtures to meet with the NS board of directors are planned at this time.

CP proposed the creation of an end-to-end railroad that it claimed “would enhance competition, ease freight congestion now and into the future, improve service to shippers, better support the economy and generate significant shareholder value for both companies.”

“We have long recognized that consolidation is necessary for the North American rail industry to meet the demands of a growing economy, but with no clear path to a friendly merger at this time, we will turn all of our focus and energy to serving our customers and creating long term value for CP shareholders,” said CP CEO E Hunter Harrison in a statement.