First major US railroad merger in 2 decades will go forward

By JOSH FUNK and MICHELLE CHAPMAN
AP Business Writers

The first major railroad merger in more than two decades, one that would link the United States, Canada and Mexico, is being approved by federal regulators. Canadian Pacific’s $31 billion acquisition of Kansas City Southern will combine the two smallest of the nations seven major railroads after an arduous two-year review from the U.S. Surface Transportation Board, released Wednesday. The bar for railroad mergers in the U.S. was raised substantially at the start of the century after a couple problematic tie-ups that snarled rail traffic for weeks. Safety was also at the forefront after the fiery derailment in Ohio last month. Regulators say the new railroad has an excellent safety record.