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Kansas City Southern to be acquired in $29B deal

By Madison Parry

One of the longest enduring Kansas City-based companies has announced its sale to Canadian Pacific Railway. The two will merge to become Canadian Pacific Kansas City in a stock and cash acquisition valued at $29 billion. Kansas City will switch out with Minneapolis to become the railway’s US headquarters. 

For over 130 years, Kansas City Southern stood a strong symbol among Kansas City businesses, growing and expanding through the decades since its start in 1887.

Image courtesy of Kansas City Southern

Over the years, the Kansas City-based railway made a number of investments and acquisitions. From its purchase of the Louisiana and Arkansas Railway in 1939, again in 1994 with the acquisition of the MidSouth Rail Corporation and others, including its investment in the Panama Canal Railway Company which extended operations even further south.

Yesterday brought news of another big change for the company, this time revealing the company entered a merger agreement with Calgary, Canada-based Canadian Pacific Railway.

Canadian Pacific will acquire Kansas City Southern in a $29 billion stock and cash transaction, this which includes the former taking on the Kansas City railway’s $3.8 billion of outstanding debt, according to a news release from Kansas City Southern.

Kansas City Southern stock as has been valued at $275 per share, representing a 23 percent premium based on March 19, 2021 closing prices for each company.

The two will soon merge to become Canadian Pacific Kansas City, the integration of operations to make it the first U.S.-Mexico-Canada rail network.