CN steps up with $33B offer for Kansas City Southern, besting CP's $25B bid
CN steps up to offer more than rival CP for U.S. railway
Canadian National Railway Co. has offered to buy U.S. railway Kansas City Southern in a cash-and-stock bid valued at $33.7 billion US.
The offer of $325 a share plus agreeing to take over $3.8 billion worth of KCS's debt tops a proposal made by Canadian Pacific Railway for KCS last month, one that offered $275 a share for a total price tag of $25 billion.
The move would bring ports and rail lines in the United States, Mexico and Canada together under one network to create the most far-reaching transportation networks in North America.
"CN and KCS have highly complementary networks with limited overlap that will enable them to accelerate growth in single-owner, single-operator, end-to-end service across North America," CN president J.J. Ruest said in a statement.
"With safer service and better fuel efficiency on key routes from Mexico through the heartland of America, the result will be a safer, faster, cleaner and stronger railway."
More to come