Aug. 26 at 7:22 PM
Shares of Canadian Pacific Kansas City Limited rose 3.4% on Tuesday after the company publicly rejected consolidation pressure in the rail industry, saying it has no plans to join merger activity.
The Calgary-based railway, formed in 2023 from the merger of Canadian Pacific and Kansas City Southern, warned of major risks to North American supply chains and shippers.
The comments come as consolidation pressure intensifies following Union Pacific’s $ 72B deal to acquire Norfolk Southern , which would create the first U.S. coast-to-coast rail operator and fuel speculation about further deals.
CPKC argued merger benefits can instead be achieved through cooperation among carriers, citing interline agreements and partnerships such as its Southeast Mexico Express venture with CSX. CEO Keith Creel said transcontinental mergers could trigger a wave of unnecessary deals, creating oversized railroads and more problems than solutions for U.S. businesses and the public.
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