Kansas City Southern chooses larger, riskier rail deal with Canadian National

摘要

Houston—Kansas City Southern said May 21 it chose the larger, riskier $30.5 billion acquisition offer from Canadian National Railway after the smaller rival Canadian Pacific opted against engaging in a bidding war for the American railroad. The Canadian railroad war saw CN competing with its smaller rival, CP, to buy KCS and create the only Canada-to-Mexico rail network in North America, that could move Canadian crude exports to the US Gulf Coast and refined products to Mexico. That combination is expected to prove more beneficial thanks to the revised United States-MexicoCanada Agreement trade deal. With only CN having rail routes stretching from Alberta to the US Gulf Coast now, adding KCS would allow CN to further dominate the crude-by-rail market.