The US Surface Transportation Board rules that a merger involving a Canadian national railway does not qualify for a waiver from the current class I merger review process and denies the railway’s proposed voting trust for now (CN / KCS)

Introduction Courting of the Kansas City Southern railway (‘KCS’) continues full steam ahead and there is now a new suitor on the scene [1]. KCS terminated an earlier corporate-friendly merger agreement with Calgary-based Canadian Pacific Railway Ltd. (‘CP’) on 21 May 2021 to forge a merger proposal with Montreal-based Canadian National Railway Co. (‘CN’) [2]. But there are steep regulatory challenges to meet before this takeover can proceed [3]. The Surface Transportation Board (‘STB’) [4] confirmed in a 17 May 2021 decision [5] that a CN/KCS merger does not qualify for a waiver review under the pre-2001 merger regulations and it will be assessed under the more stringent current provisions [6] applicable to Class I railway mergers [7]. The STB also denied CN’s motion to approve a proposed

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  • Commonwealth Secretariat (London)

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Gavin Murphy, The US Surface Transportation Board rules that a merger involving a Canadian national railway does not qualify for a waiver from the current class I merger review process and denies the railway’s proposed voting trust for now (CN / KCS), 17 May 2021, e-Competitions June 2021, Art. N° 100930

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