Canadian National Railway Stock Price, News & Analysis

On May 21, 2021, CN and Kansas City Southern (KCS) announced a merger to create a leading railway for the 21st century. KCS shareholders will receive $325.2 per share, with a total enterprise value of $33.6 billion. The merger is expected to generate nearly $1 billion in annual EBITDA synergies and enhance competition across North America. CN anticipates that the transaction will be accretive to its Adjusted Diluted EPS in the first full year. The completion of this merger is projected for the second half of 2022, following regulatory approvals.

CN and Kansas City Southern (KCS) have agreed on a merger to form a leading railway entity for the 21st century. KCS shareholders will receive $3252 per share, translating to a $33.6 billion enterprise value. This merger offers a 45% premium over KCS’ stock price as of March 19, 2021. The deal aims to enhance competition by creating a seamless service connecting the U.S., Canada, and Mexico, promising significant synergies and a $1 billion annual EBITDA increase. The merger is expected to close in mid-2022, following necessary regulatory approvals.

Canadian National Railway (CNI) has filed a request with the Surface Transportation Board to establish a procedural timeline for its merger with Kansas City Southern (KSU). This follows KCS's acceptance of CN's proposal as superior, leading to the termination of a prior agreement with Canadian Pacific Railway. CN is confident in securing approval for its voting trust that aims to enhance public benefits while maintaining its strong financial standing. The merger is expected to deliver significant value to KCS shareholders and bolster competitive opportunities across North America.

CN (CNI) has received a favorable procedural decision from the Surface Transportation Board (STB) regarding its proposed merger with Kansas City Southern (KCS). The STB will evaluate the merger under existing competition rules, which CN believes will enhance service and choice for customers. CN has garnered over 1,000 letters of support for the merger. A finalized merger agreement was completed on May 13, 2021. CN aims to demonstrate its financial strength and benefit to stakeholders during the review process.

On May 19, 2021, CN's President and CEO, JJ Ruest, alongside Executive VP Sean Finn, will present at the BofA Securities Virtual Transportation, Airlines and Industrials Conference at 10:40 a.m. ET. The conference aims to highlight CN's role as a major transportation player in North America, facilitating the movement of over 300 million tons of goods annually. Investors can tune in via a live audio webcast available on the CN Investors website, with a replay accessible post-event.

CN has submitted an enhanced proposal of $325 per share to Kansas City Southern (KCS), valuing KCS at an enterprise value of $33.6 billion, following confirmatory due diligence. KCS's Board has deemed this proposal a 'Company Superior Proposal,' intending to terminate its previous agreement with Canadian Pacific Railway. The proposal offers KCS shareholders $200 in cash and 1.129 CN shares per KCS share, representing a 45% premium compared to KCS's stock price prior to the announcement. CN aims to finalize a merger agreement promptly, emphasizing the benefits for both companies and their stakeholders.

Rob Reilly, Executive Vice-President and COO of CN (CNI), is set to speak at the RBC Capital Markets Canadian Automotive, Industrials and Transportation Conference on May 18, 2021, at 11:00 a.m. ET. This event will include a live audio webcast available on CN's investor website. CN is a leading transportation provider in North America, transporting over 300 million tons of goods annually, and connects Canada's Eastern and Western coasts with the U.S. South through a 19,500-mile network.

CN continues to garner strong support for its proposed combination with Kansas City Southern (KCS), with over 1,000 letters filed with the Surface Transportation Board (STB) in favor of the proposal. In just three weeks, 183 new letters were received, marking nearly double the support compared to CP's efforts. The letters emphasize the backing from stakeholders, including customers and local governments, highlighting the anticipated benefits for North America's economy. CN aims to further engage with stakeholders as it progresses toward an agreed transaction with KCS.