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Thread: Canadia Pacific and Kansas City Southern to Merge

  1. #1
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    Default Canadia Pacific and Kansas City Southern to Merge

    https://fox4kc.com/news/canadian-pac...city-southern/

    CP and KCS will become the first USMCA railroad. I wonder what the new livery will look like.

  2. #2

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    Not a done deal, STB has to approve first expect that by 2022....
    Todd
    Iowa Chicago and Eastern Mason City Sub

  3. #3

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    Will be interesting to see what divestiture might be needed.

    Sent from my SM-G981U using Tapatalk

  4. #4
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    This is just as weird and annoying just as much as the whole CSXT taking over Pan Am Railways with NS and GWI being thrown into the mix.

    A railfans wet dream, but something railroad employee's aren't looking forward to, or interested in..
    https://i.imgur.com/LPZNEX4.png

  5. #5
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    Honestly I'm not sure why railfans enjoy this so much either. Mergers often mean less options and overlapping network trackage being removed. I'm not too sure if there is much of an overlap here, as it's often used to enhance a network. But I've never been a fan of mergers and find it doesn't take long for another line to fall.

    Thanks

    Sean

  6. #6

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    I don't think any railfan likes mergers. Not sure where that comment comes in at, but from viewing the KCS fan page everyone doesn't like the idea!
    Todd
    Iowa Chicago and Eastern Mason City Sub

  7. #7
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    I mean I get seeing some different units and all, but other than that I can't imagine anyone would be happy other than investors.

    Thanks

    Sean

  8. #8
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    Quote Originally Posted by SurvivorSean View Post
    I mean I get seeing some different units and all, but other than that I can't imagine anyone would be happy other than investors.

    Thanks

    Sean
    Sorry, but aren't we in a world of investors? As "cnwfan" said, it is not a done deal...we have to wait for the STB, probably the 3 goverments (Canada, US and Mexico), and what the others RR will have to say...i wonder about BNSF and UP reaction to that...

    Michel

  9. #9
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    KraftHeinz was probably the biggest non-productive dud of a merger to date. Mergers like that one were all about job eliminations, nothing else really is to be gained, and a whole lot of risk of loss of institutional knowledge among the disgusted and leaving rank and file becomes a counter-threat to a successful company gong forward. They couldn't jack the price of Ketchup or Mac & Cheese enough to cover for that failure (and already their products are 2x or 3x the price of discount competitors).

    As for railroads, they already thinned the dead wood with PSR. And at the price CP would be (over)paying for KCS (3x what NS/CSX paid for Conrail, 12x what CN paid for IC), they would have to dig deep in the whole "U.S.-Mexico-Canada" theme areas in this very post-Trumpian awareness era to get adequate return. I see political hurdles.

  10. #10
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    I hope, the Community can understand my posts.

    Michael

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