By Justin Franz
MEXICO CITY — Mexican regulators gave their approval of the proposed Canadian Pacific-Kansas City Southern merger on Friday, the first major step in creating the first railroad to connect the United States, Canada and Mexico.
Although the American authorities still need to approve the deal — a review that will stretch well into late 2022 — CP and KCS officials were excited about the approval south of the border.
“This important milestone marks the next step on our path to creating the first single-line rail network linking the U.S., Mexico and Canada,” said Keith Creel, CP President and Chief Executive Officer. “This historic combination will add capacity to the U.S. rail network, create new competitive transportation options, support North American economic growth, and deliver important benefits to customers, employees and the environment.”
The news that the Mexican Federal Economic Competition Commission had approved the deal comes less than two weeks before KCS and CP shareholders vote on the deal, which was announced earlier this year. If shareholders approve it, the transaction will close a few days later and KCS will be put into a blind trust owned by CP while the U.S. Surface Transportation Board continues its review.