Copyright
© © TradePress Media Group, Inc.
Canadian Pacific today announced it has received the required regulatory clearance from the Committee on Foreign Investment in the United States (CFIUS) for the proposed combination of CP and Kansas City Southern.
CFIUS is an interagency committee authorized to review certain transactions involving foreign investment in the United States and certain real estate transactions by foreign persons in order to determine the impact such transactions may have on U.S. national security.
CP completed its acquisition of KCS on Dec. 14, 2021. Upon the acquisition's closing, KCS shares were placed into a voting trust to ensure KCS operates independently of CP while the Surface Transportation Board completes its regulatory review of the companies' joint railroad control application to create Canadian Pacific Kansas City (CPKC).
If the STB approves the merger, CPKC will become the only single-line railroad linking the United States, Mexico and Canada.
The STB's review of CP's proposed control of KCS is expected to be completed in early 2023, CP officials said in a press release.