Written by CNN Staff • Updated 23rd July 2019
On Monday, Canadian Pacific (CP) announced that it had won approval from Mexican regulators to buy Kansas City Southern (KCS).
CP already owns a stake in the Mexican railroad operator, but this transaction will allow it to purchase a larger stake to the tune of 42%
Mexico’s National Competition Institute (INCAE) granted the nod, in line with a recommendation made by the Mexican competition commission (COMAC).
CP is the second largest railroad operator in North America, while KCS is the largest U.S. railroad in terms of track size, length and intermodal facilities.
“With the support of regulatory agencies in the USA and Mexico, KCS is on the path to achieve its strategic objectives, allowing us to continue growing and delivering on our commitment to create the world’s premier rail network,” said KCS CEO Patrick Ottensmeyer in a statement.
Canadian Pacific shareholders will own about 20% of the newly merged entity.
The deal is expected to close later this year.
Meanwhile, Canadian Pacific CEO Keith Creel had a bit of a fall from grace after he was accused of boozing and cursing during a get-together with other rail executives.
According to an article published in the Vancouver Sun , Creel was photographed drinking wine, smoking cigarettes and wearing a suit jacket with his pants zipper unzipped.