Canadian Pacific Kansas City railroad megamerger would create the first Mexico-US-Canada rail network – CNN

A Canadian Pacific grain train makes its way toward Lake Louise in 2019.

By David Goldman, CNN Business

New York (CNN Business) – Two of North America’s largest railroad companies announced a merger Sunday that would connect freight customers to Canada, the United States and Mexico on a single network for the first time in history.

Canadian Pacific (CP) agreed to purchase Kansas City Southern (KSU) in a deal worth about $25 billion after discounting $3.8 billion of KCS debt that Canadian Pacific will take on.

It would combine two of the industry’s fastest-growing rail companies at a time when online purchases have soared, overwhelming ports and delaying shipments.