Canadian Pacific and Kansas City Southern announced on Sunday that they are planning a $ 29 billion deal that will form the first rail network connecting the US, Mexico and Canada.
Canadian railroad company Canadian Pacific Railway and US shipping conglomerate Kansas City Southern will connect the US, Canada and Mexico by rail in a merger worth $ 29 billion.
Following the signing of the US-Mexico-Canada Agreement (USMCA) by former US president Donald Trump, the merger is aimed to increase the flow of trade in these countries.
The roads of Canadian Pacific, which connects the major ports to the east and west between the USA and Canada, and Kansas City Southern, which connects the USA, Mexico and Kansas City, intersect in the Kansas City region. For this reason, the new company, formed under the name of Canadian Pacific Kansas City, which will be headquartered in Kansas City, is expected to operate 20 thousand miles (32 thousand 186 kilometers) of railway operation and realize sales of 8,7 billion dollars.
Keith Creel, CEO of Canadian Pacific, will be responsible for managing the new company.
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