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House Transportation Committee chair skeptical of rail merger offers

The chair of the House Transportation and Infrastructure Committee panned competing efforts by two Canadian railways to acquire Kansas City Southern (NYSE: KSU), saying the offers threaten to usher in a new round of consolidations in the rail sector.

In a Friday statement, Rep. Peter DeFazio, D-Oregon, said, “Multiple railroads are now seeking to acquire KCS, and that flurry should set off alarm bells about a potential new wave of railroad mergers that stifle competition and trigger industry-wide consolidation. We’ve been here before.”

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