It’s over; Canadian Pacific has pulled the plug on its attempt to merge with Norfolk Southern.
The decision may mark an
end to the ambitions of CP CEO Hunter Harrison’s to create a coast-to-coast
railway.
“We have long recognized
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,” he said in a statement.
One analyst was not
surprised, noting that the “deck was stacked heavily against a favourable
regulatory outcome.” As well, many U.S. politicians had voiced their opposition
to the deal.
All told, Norfolk
Southern rebuffed offers from CP three times.
Read more in the Globe and Mail.
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