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$31B merger will make rail industry even more consolidated  

March 23, 2023

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Federal regulators approved Canadian Pacific’s $31 billion acquisition of Kansas City Southern on March 15. The decision is effective April 14 and will form a new rail carrier to be called Canadian Pacific Kansas City (CPKC).

That merger was approved despite the Biden administration’s initiatives around increasing competitiveness in the American marketplace.

In 1980, there were 33 “Class I,” or major, rail companies. Next month, just six Class I rail carriers — two based in Canada — will service the U.S. These companies employ 88% of all freight rail workers and command 94% of industry revenue, according to 2021 numbers.

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