OMAHA, Neb. (AP) — Wary regulators have not approved a major railroad merger since the 1990s, but industry analysts say Canadian Pacific’s proposed $25 billion acquisition of Kansas City Southern has a good chance of getting the green light because there is little overlap between the two lines.
The deal is also set to capitalize on growing trade across North America by creating the first railroad that would link the United States, Mexico and Canada.
The Canadian Pacific-Kansas City Southern deal announced Sunday would combine the two smallest of the major railroads into one entity.
Some, however, are already expressing concern that the combination of the two railroads could hurt shippers if they are left with fewer options.
