Better Together

Together, CP and KCS will have the ability to deliver enhanced competition and unsurpassed levels of service, safety and economic efficiency for shippers and communities across the U.S., Mexico and Canada.

The First U.S.-Mexico-Canada Rail Network

While remaining the smallest of six U.S. Class 1 railroads by revenue, the combined company will create a much larger and more competitive network that reaches every North American coast and connects the U.S., Mexico and Canada.

Together, CP and KCS will offer expanded reach and premier port access. Our new single-line hauls, and our safe, efficient and expansive network will offer economic growth, increased competition and promote a shift from truck to rail for long-hauls.

Connecting communities far and wide, our combination fosters growth and economic opportunity across all of North America.

Unparalleled Service and Benefits for Shippers

A true USMCA railroad, the combined network will offer seamless service throughout the U.S., Mexico and Canada, spurring greater competition and offering new options and services for shippers.

The transaction creates more efficient single-line routes that allow some traffic between KCS-served points and the Upper Midwest/Western Canada to bypass Chicago via the CP route through Iowa. This will improve service and has the potential to contribute to the reduction of rail traffic, fuel burn and emissions in Chicago, an important hub city.

Together, we will provide:

  • Direct connections to new markets and premier ports on all coasts.
  • The only East-West railroad that runs between the U.S. Northeast and Atlantic Canada with Texas and Mexico, and also to the U.S. Upper Midwest from Mexico, Texas and Louisiana.
  • New intermodal service between Dallas, East Texas and Chicago.

Leading Commitment to Safety and Innovation

The proposed combination joins two strong-performing Class 1’s, providing KCS with access to CP’s operational expertise and installing CP’s leading safety culture at KCS. 

KCS’ network will benefit from deployment of CP’s predictive analytics to improve safety by reducing mainline mechanical failures and minimizing delays in the supply chain.

CP is the safest of North America’s Class 1 railroads, with the lowest train accident frequency for 15 consecutive years

(1)Based on Federal Railroad Administration data

Delivers Value for Both Companies’ Shareholders

The proposed transaction will create significant value for both CP and KCS shareholders. Immediately following the closing into trust, KCS common shareholders are expected to own 28 percent of CP’s outstanding common shares, allowing them to participate in the upside of both companies’ growth opportunities. 

Following final regulatory approval by the STB, KCS shareholders would also reap the benefits of synergies resulting from the combination. By accelerating the combined growth strategies of the two fastest-growing Class 1s with new efficiencies for customers and improved on-time performance under their respective PSR programs, the combined company is expected to create annualized synergies of approximately $1 billion over three years.

Additionally, the combination is expected to be accretive to CP’s adjusted diluted EPS in the first full year following CP’s acquisition of control of KCS and is expected to generate double-digit accretion upon the full realization of synergies thereafter.