How a CP Rail-CSX Corp merger sims 3 could kick off a wave of railroad consolidation | Financial Post
Transportation
A merger between Canadian Pacific sims 3 Railway Ltd. and CSX Corp. could kick off a wave of consolidation in the rail industry, analysts say, that could cut the number of big North American sims 3 railroads sims 3 in half.
It s unclear whether any deal will get done following weekend reports that CSX rebuffed a takeover offer from CP. Even if the two railroads are able to agree on a price and other terms, regulators could still thwart any merger sims 3 over competitive concerns.
We believe the acceptance of this transaction by authorities would likely create further M&As in the sector as other railroads would then face a competitive disadvantage, Benoit Poirier, analyst at Desjardins Capital Markets, wrote in a note to clients.
Related CN Rail was stymied 15 years ago on U.S. rail merger. Will CP Rail be luckier? 'Railway renaissance': Why the rail industry is attracting the biggest names in finance 'The deal is a non-starter': Analysts see little hope for CP Rail-CSX merger for now
CN tried to buy BNSF Railway Co., now owned by Warren Buffett, in 1999 but the U.S. Surface Transportation Board (STB) intervened, putting a 15-month moratorium sims 3 on Class 1 mergers. No deals between two Class 1 railroads have happened since then, and the STB has said any merger would have to demonstrate that competition would be enhanced, and not merely preserved.
However, if the regulator approved a CP-CSX combination, CN may take another crack at a deal, said an industry analyst who asked not to be named because he hadn t yet published an analysis on the potential deal.
The read across to Norfolk Southern and Kansas City Southern s shares are positive, as both might be considered in play as other rails (CN, BNSF, Union Pacific Corp.) look to keep up by completing strategic transactions, sims 3 Citi analyst Christian Wetherbee wrote in a note to clients.
We believe this offer could catalyze a bidding war for CSX (other suitors could include BNSF, CN and Union Pacific) and even initiate another final round of mergers, depending on the STB s response, Mr. Schoonmaker wrote in a note to clients.
At an investor day earlier this month, CP CEO Hunter Harrison said end to end mergers combining eastern railroads with western railroads, for example sims 3 would make the most sense. A CP-CSX tie-up would fit this model, as CSX would add a significant network in the eastern U.S. to CP s existing cross-Canada lines.
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Transportation
A merger between Canadian Pacific sims 3 Railway Ltd. and CSX Corp. could kick off a wave of consolidation in the rail industry, analysts say, that could cut the number of big North American sims 3 railroads sims 3 in half.
It s unclear whether any deal will get done following weekend reports that CSX rebuffed a takeover offer from CP. Even if the two railroads are able to agree on a price and other terms, regulators could still thwart any merger sims 3 over competitive concerns.
We believe the acceptance of this transaction by authorities would likely create further M&As in the sector as other railroads would then face a competitive disadvantage, Benoit Poirier, analyst at Desjardins Capital Markets, wrote in a note to clients.
Related CN Rail was stymied 15 years ago on U.S. rail merger. Will CP Rail be luckier? 'Railway renaissance': Why the rail industry is attracting the biggest names in finance 'The deal is a non-starter': Analysts see little hope for CP Rail-CSX merger for now
CN tried to buy BNSF Railway Co., now owned by Warren Buffett, in 1999 but the U.S. Surface Transportation Board (STB) intervened, putting a 15-month moratorium sims 3 on Class 1 mergers. No deals between two Class 1 railroads have happened since then, and the STB has said any merger would have to demonstrate that competition would be enhanced, and not merely preserved.
However, if the regulator approved a CP-CSX combination, CN may take another crack at a deal, said an industry analyst who asked not to be named because he hadn t yet published an analysis on the potential deal.
The read across to Norfolk Southern and Kansas City Southern s shares are positive, as both might be considered in play as other rails (CN, BNSF, Union Pacific Corp.) look to keep up by completing strategic transactions, sims 3 Citi analyst Christian Wetherbee wrote in a note to clients.
We believe this offer could catalyze a bidding war for CSX (other suitors could include BNSF, CN and Union Pacific) and even initiate another final round of mergers, depending on the STB s response, Mr. Schoonmaker wrote in a note to clients.
At an investor day earlier this month, CP CEO Hunter Harrison said end to end mergers combining eastern railroads with western railroads, for example sims 3 would make the most sense. A CP-CSX tie-up would fit this model, as CSX would add a significant network in the eastern U.S. to CP s existing cross-Canada lines.
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The Great Seat Squeeze: How airlines are trying to pack more people on a plane without anybody knowing
Puzzled by how fast Jian Ghomeshi's case against the CBC folded? Look no further than his counsel sims 3
30 smart answers to tough interview questions
I played only a tiny fraction of the thousands of games released for iOS this year, but sifting through them to pick ten favourites was hard
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Terms
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