• KCS/CP Merger Discussion

  • Discussion relating to the past and present operations of CPR. Official web site can be found here: CPR.CA.
Discussion relating to the past and present operations of CPR. Official web site can be found here: CPR.CA.

Moderators: Komachi, Ken V

  by JayBee
 
The UP - SP merger certainly wasn't good for CP/Soo.
  by justalurker66
 
Somehow I missed these press releases ...

CP Sets Dec. 8 Date for Special Meeting of Shareholders to vote on CP-KCS Merger Agreement
https://www.prnewswire.com/news-release ... 15872.html

CALGARY, AB, Nov. 3, 2021 /PRNewswire/ - Canadian Pacific Railway Limited (TSX: CP) (NYSE: CP) ("CP") today announced that it has scheduled a virtual Special Meeting of Shareholders ("Special Meeting") on Dec. 8, 2021 at 11 a.m. ET (9 a.m. MT) for shareholders to vote on the issuance of the CP common shares to KCS stockholders in connection with the proposed business combination with Kansas City Southern ("KCS").

All shareholders of record of CP common stock as of the close of business on Nov. 1, 2021 will be entitled to vote their shares at the Special Meeting.

"We are pleased to ask our shareholders to support this unique, once-in-a-lifetime partnership to create the first U.S.-Mexico-Canada rail network," said Keith Creel, CP President and CEO. "This end-to-end combination is an extraordinary opportunity to inject new competition and capacity into the U.S. rail network and unlock new environmentally-friendly transportation options that will grow the USMCA economy."

Kansas City Southern Sets Special Meeting Date for Vote on Combination With CP
https://investors.kcsouthern.com/news-r ... sc_lang=en

KANSAS CITY, Mo.--(BUSINESS WIRE)-- Kansas City Southern (NYSE: KSU) (“KCS”) today announced that the Company has scheduled a virtual Special Meeting of Stockholders (“Special Meeting”) to vote on the proposed combination with Canadian Pacific Railway Limited (TSX: CP) (NYSE: CP) (“CP”) on December 10, 2021 at 10 a.m. Eastern Time (9 a.m. Central Time). All stockholders of record of KCS common stock and KCS 4% non-cumulative preferred stock as of the close of business on October 14, 2021, will be entitled to vote their shares at the Special Meeting.
  by eolesen
 
JayBee wrote: Tue Nov 23, 2021 8:43 pm The UP - SP merger certainly wasn't good for CP/Soo.
That makes no sense, considering the complete lack of overlap or even regional significance between SP and CP.
  by JayBee
 
eolesen wrote: Thu Nov 25, 2021 1:22 am
JayBee wrote: Tue Nov 23, 2021 8:43 pm The UP - SP merger certainly wasn't good for CP/Soo.
That makes no sense, considering the complete lack of overlap or even regional significance between SP and CP.
SP was Soo Line's biggest interchange partner at KC prior to SP merging into UP and provided CP with three doublestack trains per week. In addition Trains 226/227 were dedicated to traffic for SP, while 220/221 handled all the traffic for UP/AT&SF/KCS at Kansas City. Or perhaps you forgot about the period after Soo Line acquired MILW in 1985 until the SP was acquired by UP, and AT&SF was merged into BN. After those two happened interchange at KC dwindled to the point that CP sold the line to Kansas City to Dennis Washington and it became I&M Rail Link.
  by eolesen
 
Three trains per week isn't serious impact...

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  by JayBee
 
eolesen wrote: Thu Nov 25, 2021 9:15 pm Three trains per week isn't serious impact...
Added to a solid manifest each way it is. Plus there was another block in the 430/431 train out of St. Paul. The traffic from the other three Class I carriers plus KCT was handled by just one train.
  by eolesen
 
Yeah, you're focused on 1985 to 1994, but keep in mind little to none of that interchange traffic existed prior to 1980. That's when Cotton Belt picked up was originally the Rock Island's Golden State (KC to Tucumcari and El Paso); prior to that, the Rock kept that traffic.
  by Gilbert B Norman
 
From Hampton Inn - Castleton - Indianapolis---

Mr. Olesen, a point of order; Rock Island end of track was actually Santa Rosa, NM vice Tucumcari, even if as you note, the operational interchange was at the latter.
Last edited by Gilbert B Norman on Fri Nov 26, 2021 5:00 pm, edited 1 time in total.
  by Shortline614
 
The Mexican regulatory agency has approved CPKC, without any conditions as far as I know...

From Canadian Pacific:
Canadian Pacific Railway Limited (TSX: CP, NYSE: CP) ("CP") and Kansas City Southern (NYSE: KSU) ("KCS") today announced that they have received the required regulatory pre-transaction control approvals from the Mexican Federal Economic Competition Commission ("COFECE") and the Mexican Federal Telecommunications Institute ("IFT") for the previously announced proposed combination of KCS and CP.
https://www.cpr.ca/en/media/canadian-pa ... -approvals

Is there a link to the COFECE or IFT written decision in English? Is there even a published written decision?
  by JayBee
 
eolesen wrote: Fri Nov 26, 2021 2:10 am Yeah, you're focused on 1985 to 1994, but keep in mind little to none of that interchange traffic existed prior to 1980. That's when Cotton Belt picked up was originally the Rock Island's Golden State (KC to Tucumcari and El Paso); prior to that, the Rock kept that traffic.
The traffic into Kansas City prior to 1/1/86, the date when Soo Line took over the MILW really doesn't matter as CP through Soo Line had no access to it.

I also forgot to mention the other significant interchange partner at KC, the Missouri - Kansas - Texas RR. The UP, ATSF, and BN had every incentive to keep traffic on their own lines for as great a distance as possible, so unless the traffic was destined for some point on Soo(CP) in the Quad Cities or Muscatine they would interchange Traffic at Chicago or the Twin Cities.

The loss of traffic from both, SSW(SP and DRGW), and MKT, at KC following their acquisition by UP is what lead CP to sell the "Corn Lines" to Washington Group.