Is a Proposed Rail Merger Good for North America?
International Trade Partner Francisco Sánchez was interviewed by the Latin America Advisor, a publication of The Dialogue, about the recent merger agreement between Canadian Pacific Railway and Kansas City Southern. If approved, the $25 billion merger would create the first freight rail network connecting Canada, the United States and Mexico, opening up opportunities for increased trade between the three countries. "A successful merger would likely spur North American trade by taking advantage of the 2018 United States-Mexico-Canada Agreement, which updated NAFTA," said Mr. Sanchez.
He also discussed the likelihood of the U.S. Surface Transportation Board (STB) approving the merger, given concerns over antitrust issues related to similar agreements in the past. "In the past, the STB has denied other merger attempts by Canadian Pacific. However, industry analysts have noted that this deal is smaller than those proposed in the past, meaning there is reason for cautious optimism for the merger in 2022.”