RTR: Canadian National launches battle for Kansas City rail with $30bn-plus bid

REUTERS reports:

Canadian National (CNR.TO) said on Tuesday it had offered to buy railroad operator Kansas City Southern (KSU.N) for about $30 billion, trumping a rival bid by Canadian Pacific (CP.TO) and sending the U.S. company’s shares up more than 20%.

Either combination will create the largest North American railways, spanning across the United States, Mexico and Canada, by transaction value.

The offers come amid a recovery in supply chains that were disrupted by the COVID-19 pandemic, and follow the ratification of the US-Mexico-Canada Agreement last year that removed the threat of trade tensions which had escalated under former U.S. President Donald Trump.

Canadian National’s offer of $325 per share, including $200 in cash and 1.059 shares, represents a premium of 26.8% to Kansas City Southern’s last close on Monday.

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