Kansas City Southern

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302.05
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Other Pre-Announcement, Mergers / Acquisitions

Canadian Pacific To Buy Kansas City Southern In A Deal For An Enterprise Value Of About $29 Bln

Published: 03/21/2021 11:27 GMT
Kansas City Southern (KSU) - Press Release - Canadian Pacific and Kansas City Southern Agree to Combine to Create the First U.S.-mexico-canada Rail Network.
Stock and Cash Transaction Representing an Enterprise Value of Approximately $29 Billion.
Kansas City- Canadian Pacific to Acquire Kcs in a Deal Representing an Enterprise Value of About Usd$29 Billion, Includes $3.8 Billion of Kcs Debt.
Transaction, Which Has Unanimous Support of Both Boards of Directors, Values Kcs at $275 per Share.
Following Closing, Shareholders of Kcs Will Receive 0.489 of a Cp Share, $90 in Cash for Each Kcs Common Share Held.
Preferred Shareholders Will Receive $37.50 in Cash for Each Kcs Preferred Share Held.
Kcs Common Shareholders Are Expected to Own 25 Percent of Cp's Outstanding Common Shares.combined Company Under Cp's Control is Expected to Create Annualized Synergies of About $780 Million Over 3 Years.combination is Expected to Be Accretive to Cp's Adjusted Diluted EPS in First Full Year Following Acquisition.combination is Expected to Generate Double-digit Accretion Upon Full Realization of Synergies Thereafter.
To Fund Stock Consideration of Merger, Cp Will Issue 44.5 Million New Shares.
Cash Portion Will Be Funded by Cp Through a Combination of Cash-on-hand and Raising Approximately $8.6 Billion in Debt.
As Part of Merger, Cp Will Assume Approximately $3.8 Billion of Kcs' Outstanding Debt.