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The US Rail Regulator sets aside the current and more stringent regulations applicable to Class I mergers and determines that a merger proposal can proceed under the older rules governing such mergers (CP / KCS)

If the proposed corporate-friendly merger announced on 21 March 2021 between Calgary-based Canadian Pacific Railway Ltd. (‘CP’) and Kansas City Southern Railway Company (‘KCS’) [1] proceeds [2], it will be examined under a 2001 waiver [3] granted by the United States Surface Transportation Board (‘STB’) [4]. In a 23 April 2021 ruling considered by the entire board, the STB [5] confirmed its earlier decision to waive the application of the current (and more stringent) regulations [6] for a merger involving KCS and another Class I railroad [7]. Instead it will apply the regulations in effect before 11 July 2001 [8]. ‘In adopting the current major merger rules, which emphasize the public benefits flowing from enhanced competition, the Board noted that the “eastern and western railroads do not

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  • Commonwealth Secretariat (London)

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Gavin Murphy, The US Rail Regulator sets aside the current and more stringent regulations applicable to Class I mergers and determines that a merger proposal can proceed under the older rules governing such mergers (CP / KCS), 23 April 2021, e-Competitions Preview, Art. N° 100617

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