Canadian Pacific to acquire Kansas City Southern in $25 billion railroad merger that spans across the entire North American continent

Canadian Pacific Railway has agreed to acquire Kansas City Southern in a deal that will create the first ever rail network that spans across Canada, the United States, and Mexico. The combined company will operate 20,000 miles of rail, employ close to 20,000 people, and generate total revenues of about $8.7 billion, according to a statement. The deal values Kansas City Southern at $275 per share, representing a 23% premium from Friday’s closing price of $224.16. The deal assigns Kansas City Southern an enterprise value of $29 billion, and a $25 billion valuation less outstanding debt.