Stb applies "heavier burden" and greater scrutiny to cn bid for kcs, underscoring heightened regulatory risk

Stb "expects to take a more cautious approach to a voting trust" for proposed cn-kcs transaction decision follows doj comments citing cn proposal as having "greater risk to competition than cp agreement" voting trust already approved for use in cp/kcs transaction highlights cp agreement as superior to cn offer calgary, ab, may 17, 2021 /prnewswire/ - canadian pacific railway limited (tsx: cp) (nyse: cp) ("cp") today issued the following statement in response to the surface transportation board's ("stb") decision to apply the newer, more stringent merger rules to canadian national's ("cn") proposed acquisition as well as its effort to obtain approval to use a voting trust in connection with its proposed combination with kansas city southern ("kcs"): we concur with the stb's decision to apply the new merger rules to the proposed cn transaction. the stb explained: "the proposed transaction poses issues that the current merger rules were designed to address, namely the potential competitive impacts of a merged entity with some degree of overlapping routes and presently existing direct competition—characteristics that would appear to pertain to the cn and kcs systems.
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