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Canadian Pacific - Kansas City Southern merger


newbryford
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43 minutes ago, John M Upton said:

Or silly, depending on your point of view...


I’m interested - why ‘silly’?

 

CP have established that the KCS board are prepared to sell. CN appear to think that KCS would make a good fit with their existing operations. There’s also possibly the thought that a CP-KCS merger would take traffic away from CN. So CN have made a decision to try to outbid CP. 

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I have an idea for what a combined Canadian Pacific/Kansas City Southern system should be named: The CPKC Railway. The initials "CP" is well known in the railroad industry as the Canadian Pacific Railway. The initials "KC" is the shorter abbreviation for the City of Kansas City, Missouri/Kansas.

 

Wendell

Idaho, USA 

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On 21/04/2021 at 15:34, pH said:

CN appear to think that KCS would make a good fit with their existing operations. There’s also possibly the thought that a CP-KCS merger would take traffic away from CN. So CN have made a decision to try to outbid CP. 

 

Or....

 

The CN knows that they will never make it past the STB, but are making a counter offer to drive up the price to make the merger as painful as possible on the CP.  The CP will have to offer more to get the deal.

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Agree with Dave regarding CN's intentions - in a sane world the STB or someone else would block a CN / KCS merger as being bad for competition so the obvious conclusion is CN is trying to either hurt CP financially by forcing them to overbid, or forcing them out of the running if the STB thinks a CN/KCS deal is okay.

 

But if I was CP I think I would call CN's bluff - maybe go up a bit if the financials still work but otherwise tell KCS go ahead but I hope you get a non-refundable deposit from CN given they are wasting your time...

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6 hours ago, Dr Gerbil-Fritters said:

 

More likely say goodbye to the Southern Belles...


Gradually, yes, but not immediately. And units do start to wander round the larger system after a takeover. I’ve seen a Dakota, Minnesota and Eastern engine here on the west coast and Soo units still in white and red would turn up occasionally in BC. Plus Southern Belles are already rare visitors - I’ve seen three in the last few years.

 

I can always hope!

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Proposed merger now approved by CPR shareholders:

 

 https://www.theglobeandmail.com/business/article-cp-rail-shareholders-green-light-purchase-of-kansas-city-southern/

 

The proposed name of the merged company was also approved - Canadian Pacific Kansas City Ltd. I wonder how much they spent to have some corporate image polishing company come up with that? 
 

Though I suppose ‘Canada Southern’ and ‘Kansas Pacific’, having previously been used, are still owned by some other company who would want lots of dollars to let them be used by the new organization. 
 

How about Mecanus Railway? Should I copyright it now?

 

(Or Canusmex Railway?)

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What they will do is say 'I know, why don't we take one initial from each company, we can take the C from Kansas City and the P from Canadian pacific and call it CP?'

 

That'll work....

 

It is what Sky Broadcasting did when they "merged" with British Satellite Broadcasting (BSB) where they changed the S to mean Sky and then subsequently dropped the two B's off it effectively erasing their former competitor from history.

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9 hours ago, John M Upton said:

What they will do is say 'I know, why don't we take one initial from each company, we can take the C from Kansas City and the P from Canadian pacific and call it CP?'

 

That'll work....

 

It is what Sky Broadcasting did when they "merged" with British Satellite Broadcasting (BSB) where they changed the S to mean Sky and then subsequently dropped the two B's off it effectively erasing their former competitor from history.

It's also exactly what a large Road Transport company did when they took over the company I was working for at the time.

They were "C(name) Logistics", and we were "B(name) Distribution". So first they changed our name to "B(name) Logistics", then a year or so later claimed they were 'merging' the two companies by taking their name ('C') and our "Logistics" to make "C(name) Logistics". Oh what a surprise :rolleyes:  :fool:

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16 hours ago, Regularity said:

They could always take the last word of each name, to create “Southern Pacific”… ;)

That is what seemed to happen when Union Pacific and Southern Pacific merged.

 

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BNSF, NS, and CN have (or were expected to) file with the STB for what they want from the CP/KCS merger.

 

CN wants the STB to force CPKC to sell a line from Springfield to Kansas City to CN.

 

BNSF has apparently filed for the predicted trackage rights, and has apparently put in a request to the Mexican Government to operate in Mexico.

 

https://railfan.com/cpkc-meger-cn-wants-kcs-line-ns-bnsf-want-trackage-rights/

 

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On 21/03/2021 at 10:24, pH said:

Let’s not get too carried away yet. Remember the CN-BNSF merger!

 

https://www.stb.gov/Decisions/readingroom.nsf/WEBUNID/9E0BA130B4D48DB1852568B0005B5AE4?OpenDocument

 

The US does not like foreign control of US companies.


The proposed merger appears to have now cleared that hurdle:

 

https://finance.yahoo.com/news/canadian-pacific-kansas-city-southern-120000789.html

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It is official. The Surface Transportation Board has okayed the CP-KCS merger. The CPKC does not have to give any trackage rights or rail lines to another railroad. However, there are stipulations that must be followed from the federal government.

https://www.trains.com/trn/news-reviews/news-wire/conditions-placed-on-cp-kcs-merger-designed-to-ensure-competition-smooth-operations/

 

Wendell

Idaho, USA

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6 hours ago, pH said:

The CPR-KCS merger takes place on April 14. Depending in which time zone the merger becomes legal, it may have actually happened already.

 

Looks like it's done.

 

https://www.marketscreener.com/quote/stock/CANADIAN-PACIFIC-RAILWAY-1409549/news/Canadian-Pacific-and-Kansas-City-Southern-combine-to-create-CPKC-43494736/

 

CPKC as the new moniker with a new logo: 

https://www.trains.com/trn/news-reviews/news-wire/cpkc-unveils-new-logo-on-first-day-as-a-merged-system/

 

Edited by Weeny Works
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