CP confirms termination of exploratory talks with CSX

Written by Jenifer Nunez, assistant editor

Canadian Pacific said that exploratory conversations held with CSX concerning a possible business combination have ended.

 

CP said it proposed an integrated coast-to-coast combination that would improve customer service, promote competition, alleviate congestion in North America – specifically the key Chicago gateway – and generate significant shareholder value.

While regulatory concerns appear to be a major deterrent for many railroads considering combinations, CP says believes that given the right structure between the right players and having thoughtful considerations and remedies to address shipper concerns, regulatory approvals are achievable.

The North American rail industry is confronted today with the challenges of moving more freight than ever and the prospect of moving even more as oil production, crop yields and consumer demand grow alongside the economy. CP says that the significant problems that beset the industry now will only worsen over time if solutions aren’t put in place immediately.

 

 

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