Kansas City Southern (KSU) - Get Report agreed to a $25 billion takeover by Canadian Pacific Railway in a stock and cash deal that creates the first rail network to connect Mexico, Canada, and the United States.
The deal, which includes around $3.8 billion in Kansas City Southern debt, values the rail company at around $275 a share, which is a 22.6% premium to its closing price on Friday.
Canadian Pacific CEO Keith Creel will lead the company, which will be based in Calgary and operate around 20,000 miles of track, employ nearly 20,000 people and generate nearly $9 billion in annual revenue
The new company will be called Canadian Pacific Kansas City, or CPKC.
Regulators are set to give their final approval for the merger in mid-2022.
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