In March 2023, the U.S. Surface Transportation Board approved Canadian Pacific’s acquisition of control of Kansas City Southern, allowing Canadian Pacific to assume control of Kansas City Southern on April 14, 2023. The two railways have now combined to create Canadian Pacific Kansas City, the first single-line railway network connecting Canada, the United States and Mexico. The final decision marked the board’s first approval of a Class I rail merger since the 1990s.
The new single-line service will span approximately 20,000 miles of rail and employ 20,000 people; it is expected to shift approximately 64,000 truckloads annually from North American roads to rail, which will enhance safety and reduce carbon emissions. New direct service routes will offer shippers more seamless access to major economic regions, including the Midwestern United States and the Gulf Coast, in addition to agricultural areas in Canada and industrial markets in Mexico, which will provide more reliable service while creating new efficiencies and reducing travel time.
In connection with assuming control of Kansas City Southern, Canadian Pacific announced an exchange offer of seven series of notes that were previously issued by Kansas City Southern for new notes issued by Canadian Pacific.
The S&C team that has been advising Canadian Pacific on its acquisition of Kansas City Southern included Frank Aquila, Andrew Gerlach, Julia Kim, Renata Mascarenhas and Bradford Olson. The S&C team advising on the Board’s regulatory approval process included Adam Paris, Renata Hesse, Sam Hynes, Andrew Gerlach, Marc-Andre Cyr, Jason Heflin, Zach Sarnoff, Alexa Cover, Julia Prezioso Fotos, Nathan Golden, Frank Orlich, Brandon Stoffers and Rachel Taratuta-Titus. Cathy Clarkin, Renata Mascarenhas, Bradford Olson and Daniel Levinson advised on securities and reporting matters. Sarah Remmer Long and Brittney Kidwell advised on executive compensation and benefits matters. Davis Wang, John Jo and Ellen Kim advised on tax matters. Matthew Brennan advised on environmental matters.
The S&C team advising on financing and the exchange offer included Cathy Clarkin, Ari Blaut, Alan Fishman, Shray Gupta and Jisoo Park.
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