A PYMNTS Company

Canada: Railway exec predicts N. America consolidation, addresses merger plans

 |  May 23, 2013

The CEO of Canadian Pacific Railway Ltd. reinforced the theory that major railroads throughout North America – known as Class 1 railroads – will face a major consolidation in the coming years. Chief Executive Office Hunter Harrison outlined his plans for the company’s future mergers, noting that plans for major buyouts have to be put on hold as Canadian Pacific does not currently have the financial strength to make such deals. Instead, said Harrison, the company will focus on short-line, regional railroads in the immediate future, as Harrison plans to retire three years from now. In a statement, Harrison, who is set to be preceded by current COO Keith Creel, noted that any antitrust issues stemming from major buyouts will be handled “post-Harrison.” Canadian Pacific is the nation’s second-largest railroad; Harrison also dismissed rumors that a buyout of Kansas City Southern railway company is in the future.

Full Content: Montreal Gazette

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