The planned merger of Kansas City Southern with Canadian Pacific Railway Ltd. is being challenged by Canadian National Railway Co.
Canadian Nation has filed an official notice with the Surface Transportation Board seeking to condition any approval of the merger with Canadian Pacific on divesting a stretch of KC Southern rail from Kansas City to Springfield, Illinois, Canadian National (NYSE: CNI) said in a Thursday release.
The Kansas City Business Journal reports Canadian National, rejected in its desire to merge with Kansas City Southern now promises to invest $250 million in the line that passes through eastern Oklahoma and south into Texas.
CN also contends the Transportation Board has the power to order “the divestiture of parallel tracks” as part of the regulator’s review of mergers, the release says. CN notes that Canadian Pacific already has a route from Kansas City to Chicago and beyond to Detroit and Eastern Canada.
Source: Kansas City Business Journal