Canadian Pacific Railway has agreed to acquire Kansas City Southern in a $25 billion deal that will create the first rail network connecting the United States, Mexico and Canada, the two companies announced Sunday. Canadian Pacific and Kansas City Southern transport mainly commodities, automotive parts and food products across North America. The combined company will be based out of Calgary, with U. S. operations headquartered in Kansas City and another regional headquarters in Mexico City. The company will be governed by the new United States-Mexico-Canada Agreement, which went into effect in July and replaced the North American Free Trade Agreement. The agreement's provisions include strengthened labor laws and a focus on increasing wages and adding jobs in the automotive industry.“The new competition we will inject into the North American transportation market cannot happen soon enough, as the new USMCA trade agreement among these three countries makes the efficient integration of the continent’s supply chains more important than ever before," Canadian Pacific President and CEO Keith Creel, said in a statement. He will head up the combined entity. Railroads Strike a $25 Billion Merger (WSJ)Why Union Pacific Stock Isn't Our Top Pick In Transportation Sector (Forbes)


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