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Written by THE CANADIAN PRESS
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Tuesday, 30 September 2008 |
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CALGARY - Canadian Pacific Railway Ltd. (TSX:CP) has received U.S. regulatory approval for its US$1.48-billion acquisition of Dakota, Minnesota & Eastern Railroad.
The approval by the U.S. Surface Transportation Board, which regulates the U.S. rail industry, was announce Tuesday and become effective Oct. 30 - nearly 14 months after the deal was announced.
DM&E has 1,100 employees and serves eight states in the U.S. Mid-West. CP is also acquiring its subsidiaries, Iowa, Chicago & Eastern Railroad and Cedar American Rail Holdings.
Canadian Pacific said the DM&E acquisition will give the Calgary-based company improved access to the Kansas City gateway and, from there, the U.S. Southwest and Mexico.
"The DM&E is an excellent fit for Canadian Pacific making this a strategic end-to-end addition to our network," said Fred Green, Canadian Pacific's president and chief executive officer.
The company said the Surface Transportation Board denied all requests for conditions other than those agreed to voluntarily by Canadian Pacific.
CP is Canada's second-largest railway company after Montreal-based Canadian National Railway (TSX:CNR).
CN's acquisition of the Elgin, Joliet & Eastern Railway line, which would improve its operations in the Chicago area, has been stalled by an environmental review initiated by the regulator.
Despite CN's repeated requests for the STB to give partial approval of the EJ&E transaction, so it can complete the purchase by Dec. 31, the board hasn't changed its process.
Canadian National has asked a U.S. appeals court to order the regulator to make a final decision on the transportation merits of the deal by Dec. 31 and decide on the environmental aspects later.
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Last Updated ( Tuesday, 30 September 2008 )
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