KANDIAN PASFIC railway has approved the acquisition of Kansas City in an estimated $ 25 billion deal to establish the first shipping network for railways linking Mexico, the United States and Canada.
According to Arab Net, an integration deal, facing a lengthy regulatory review, is long-term on an interrelated economy in North America.
The railway volumes, which fell last year, despite the accumulation of goods from Asia in the California ports, which led to some US factories,
In turn, Kansas City CEO, Patrick Eithermier said that the new trade agreement between the United States, Mexico and Canada, which replaced the NAVTA agreement in July 2020, creating a unique opportunity to ship goods across the three countries with recovering its economies from the epidemic.
"This company will be a fingerprint in North North America, as integrated rail will be able to reduce the need for trucks to link production sites and allow goods to avoid crowded California ports.
The deal will need approval from the US Land Transport Board, which requires major railways to prove that it is working in public interest through competition. The merger partners said they expect the review of the dealings of the deal by mid-2022.
The new company returns about $ 8.7 billion a year and will employ nearly 20,000 people, to run the new entity, CEO Candidan Pacific, Keith Krill, has 25% of the new entity.
For his part, Krill said, the talks began late last year. It was rejected earlier, where Kansas was seeking to exit from the market and shift to a closed company, and got off offers from Black Stone Group, and Global Enfrastrakcher Partners, worth $ 20 billion.
Kansas contributed to the end of the Canadian company, especially as shareholders will keep a minority share in the company, informed of the Wal Street Journal, and Arabic.
