North American freight rail service provider Kansas City Southern plans to accept Canadian National Railway’s $33.6bn offer to merge with the latter.
The US railroader had announced its acceptance of another freight train company, Canadian Pacific in March this year. However, the $29bn deal fell through in May after Canadian National’s more competitive bid.
Media reports from May noted that if the new merger is successful, it will create a direct link between three nations of the continent, Canada, North America, and Mexico, a first for all.
Kansas City Southern has an extensive network spanning the US and Mexico. According to its Q2 2021 earnings release on Jul 16, the company’s carload revenue increased by 39pc with 7,800 units of freight in ores and minerals amounting to $6.1mn.
The company reported a 37pc rise in Q2 revenue to $749.5mn from $548mn in the same quarter of 2020.