US: Canadian Pacific ends Norfolk Southern merger plan

Canadian Pacific Railway announced on April 11 that it that it had terminated its efforts to merge with Norfolk Southern, had withdrawn a resolution asking NS shareholders to vote in favor of good-faith negotiations between the companies, and that no further financial offers or overtures to meet with the NS board were planned.

‘We have long recognised that consolidation is necessary for the North American rail industry to meet the demands of a growing economy, but with no clear path to a friendly merger at this time, we will turn all of our focus and energy to serving our customers and creating long term value for CP shareholders’, said CP Chief Executive E Hunter Harrison.

CP had confirmed in November that it had written to NS proposing a ‘business combination’ to create a transcontinental railway which it felt could become ‘a new industry leader’ with ‘the scale and reach to deliver improved levels of service to customers and communities while enhancing competition and creating significant shareholder value’. This followed an earlier proposal by Harrison for a merger between CP and CSX, which was rebuffed in October 2014.

Full content: WallStreetJournal

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