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Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (104265)	3/22/2021 9:34:18 AM
From: Goose94	Read Replies (1) \| Respond to of 202710

Canadian Pacific Railway (CP-T) is trying yet again to buy a rival Class 1 railroad, only this time it's friendly. The US$25-billion cash-and-stock agreement to buy Kansas City Southern is a bold attempt to create a truly continental railway with 20,000 miles of tracks that would cut all the way into Mexico. So many storylines to pursue. Among them, and most critically, are the regulatory hurdles ahead. The deal requires the approval of the U.S. Surface Transportation Board, which CP and KCS anticipate could take more than a year. Then there's the issue of what it means for the respective shippers' customers. Recall that there was an outcry in some corners when CP tried half a decade ago to buy Norfolk Southern. CP’s balance sheet is also an important talking point, seeing as how the US$25-billion deal is actually a US$29-billion transaction when assumed debt is taken into account. On top of that, CP will borrow US$8.6 billion to help finance the takeover. What about jobs? Management teams were saying yesterday that no cuts are anticipated even as $780 million in annual synergies are anticipated. In fact, they say the headcount is expected to rise in the years 2023-2025. As for domestic interests, the combined company will retain CP's headquarters in Calgary.