A PYMNTS Company

US: Justice Department urges rejection of CP trust plan

By  |  April 10, 2016

Canadian Pacific Railway’s proposed takeover of Norfolk Southern Railway ran into more opposition on Friday, with the US Department of Justice urging a regulator to reject preliminary approval of the $28-billion US merger.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The Justice Department called on the US Surface Transportation Board, which is reviewing the proposed union, to reject early approval of a voting trust structure that CP has put forward.

    “Canadian Pacific’s voting trust proposal would compromise Norfolk Southern’s independence and effectively combine the two railroads prior to completion of the STB’s review,” said assistant attorney general Bill Baer of the Justice Department’s Antitrust Division.

    “That makes no sense. We urge the STB to preserve its ability to review the impact of the proposal on competition and consumers before Canadian Pacific starts scrambling the eggs,” Baer said in a release.

    Calgary-based CP has proposed putting itself into a voting trust and installing its CEO, Hunter Harrison, as head of Virginia-based Norfolk Southern while the deal is reviewed.

    Full content: The Roanoke Times

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.