CP Ends Bid to Acquire Norfolk Southern

Norfolk Southern

CBJ — Canadian Pacific Railway has abandoned plans to buy Norfolk Southern Railway in a transaction that could have been worth about $28 billion.

CEO Hunter Harrison says CP believes the industry needs consolidation, but there is too much friction with the takeover talks. In addition to that, the U.S. Department of Justice opposes CP’s petition for amendments voting trust structure.

Calgary-based CP, Canada’s second-largest railroad operator, launched its takeover bid for Norfolk Southern in mid-November, touting potential savings of more than $1.8-billion annually. However, the Virginia-based rail company has made it clear it has no interest in a merge.

@CanBizJournal

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