CP facing little opposition to KCS takeover

by  The Canadian Press (CPSTF)

Canadian Pacific Railway is facing scant opposition so far over its US$25-billion bid for Kansas City Southern, a sea-change from prior takeover efforts.

Wasatch Railroad Contractors, a rail-oriented business in Wyoming, has made the lone filing with the U.S. Surface Transportation Board arguing against the deal.

Chairman and CEO John Rimmasch wrote that the merger would allow a Canadian-based railroad a dominating monopoly in the United States and create the only rail system with direct ownership of track and trackage rights to Canada, the U.S. and Mexico.

Meanwhile, Calgary-based CP Rail demonstrated support for its takeover bid by filing nearly 260 statements from shippers and supporters.

The railway says the move was “a collaborative process” with Kansas City because of similar benefits across shippers and industries.

In 2014, CP Rail abandoned a push to acquire CSX Corp. in the face of opposition. It dropped a bid for Norfolk Southern two years later.