WAWG
From U.S. Wheat Associates
On March 21, 2021, Canadian Pacific (CP) Railways announced a $25 billion plan to merge with Kansas City Southern (KCS), calling it a “transformative” remake of the freight-rail industry. The proposed new railroad would be the first U.S.-Mexico-Canada-linked rail line.
Not to be out-done, Canadian National Railway (CN) began talks with KCS in late April, saying it could yield a “superior” rail merger proposal and offering $30 billion for KCS compared to CP’s $25 billion.
The U.S. wheat industry is closely watching both proposals but has not taken a position in support of or opposition to either proposed merger. U.S. Wheat Associates (USW), along with a coalition of shippers, has asked the Surface Transportation Board (STB), which regulates U.S. rail service, to apply its most strict standard of “enhances competition” to both proposals. Read the rest of the article here.