Monday, April 11, 2016

Canadian Pacific Abandons Merger Talks With Norfolk Southern

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. 

No comments:

Post a Comment