Canadian National Railway Company and Wisconsin Central Transportation Corporation (WC) say they are pleased with the unanimous Surface Transportation Board (STB) decision approving CN’s acquisition of WC.
The STB’s approval of the transaction completes regulatory review of the CN/WC merger. Canada’s Competition Bureau cleared CN’s acquisition of WC on July 10.
CN and WC expect to consummate the transaction on or about Oct. 9. In the merger, WC shareholders will receive US$17.15 per share for their stock.
“The STB decision is an exciting milestone for everyone at CN and Wisconsin Central. WC will now become an even more integral part of CN’s NAFTA network between Canada, the U.S. Midwest and the states between the Great Lakes and the Gulf of Mexico. The combination of the two railroads, which already have a close working relationship, will strengthen CN’s North American franchise, building new opportunities for revenue growth, improved shareholder value and employee advancement,” said Paul M. Tellier, CN’s president and chief executive officer.
“We believe that CN/WC merger will increase transportation competition. We also believe that the STB decision preserves the economic benefits envisaged by the transaction. Shippers will benefit from extended market reach via new, single-line services, CN’s promise to maintain gateways affected by the transaction, greater operating efficiencies and assurances that service on the combined CN/WC network will be as good as, or better than, what existed before the merger. We are determined to achieve a flawless integration of CN and WC, just as we did in the CN/Illinois Central merger,” he said.
“WC believes the merger is in the best interests of our shippers, employees, stockholders and the states and communities we serve. It’s time for WC to become part of a larger North American rail network, and CN is the perfect partner,” said Thomas F. Power, Jr., president and chief executive officer of WC, said:
Immediately after the merger, CN will commence a step-by-step integration of the two companies’ North American operations. WC’s North American network will become CN’s sixth operating division – the Wisconsin Central division – retaining ties to local communities and continuing high standards of safety and customer service.
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