Canadian Pacific Prevails With $31 Billion Bid for Kansas City SouthernSeptember 15, 2021
Canadian Pacific Railway has emerged as the winning bidder for Kansas City Southern, prevailing over a competing bid by Canadian National Railway. Canadian Pacific and Kansas City Southern announced on September 15 that Canadian Pacific would acquire Kansas City Southern in a stock and cash transaction representing an enterprise value of $31 billion.
The deal would create the first rail network connecting the United States, Mexico and Canada. The combined company would have an enterprise value of $86 billion, operate approximately 20,000 miles of rail and employ more than 20,000 people.
Canadian Pacific received authorization from the Surface Transportation Board to use a voting trust for this deal, while Canadian National did not.
As counsel to Canadian Pacific, S&C has assembled a multi-disciplinary team to work with the client on this complex multijurisdictional project. In addition to M&A matters, S&C is advising on financing, executive compensation, tax, intellectual property, environmental considerations, trade regulation and antitrust matters.
Our M&A Group, which is ranked in Band 1 in Chambers USA, brings a unique combination of creativity and commercial sensitivity to every representation. By understanding our clients’ strategic objectives, we help businesses around the world navigate the legal and commercial complexities of cross-border transactions.
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Meet the Canadian Pacific M&A team:
Frank is the head of our Global M&A Group and has advised clients in many of the largest and most important global transactions that have been transformational across a range of business sectors. During the course of his career, he has advised on deals totaling more than $1 trillion in value. He regularly advises companies and their boards of directors on M&A, proxy contests, activism, unsolicited bids, corporate governance, crisis management and a range of matters affecting corporate policy and strategy.
C. Andrew Gerlach
Andrew is a partner in the Firm’s M&A Group. He advises clients on a variety of regulatory, takeover defense and corporate control, general corporate, strategic and corporate governance matters and represents both U.S. and non-U.S. public and private clients in a range of matters.