Rail merger raises some agricultural concerns
The Canadian Pacific Railway Limited and Kansas City Southern announced Sunday they have entered into a merger agreement, under which CP has agreed to acquire KCS in a stock and cash transaction representing an enterprise value of approximately $29 billion, which includes the assumption of $3.8 billion of outstanding KCS debt.
The transaction has the unanimous support of both railway boards of directors, but may raise concerns among farmers about concentration among companies that serve them.
The proposal will now be considered by the U.S. Surface Transportation Board.
Mike Steenhoek, executive director of the Soy Transportation Coalition, said in a statement that “it is too early to make a definitive conclusion on whether the merger, if approved, will primarily benefit shareholders, customers, or both.”
Steenhoek also released what he called “a handful of thoughts of mine and those agricultural shippers from whom I have received feedback.”
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Of the approximately 2,270 acres that burned in the April 1, 2021, Medora, N.D., fire, rancher Doug Tescher said all but about 100 acres were U.S. Forest Service land that he utilizes for summer grazing.