Canadian Pacific Wants To Buy Kansas City Southern

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SOO2719
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Canadian Pacific Wants To Buy Kansas City Southern

Postby SOO2719 » Sun Mar 21, 2021 10:14 am

Article from Trains News Wire is free to read:

https://www.trains.com/trn/news-reviews/news-wire/breaking-canadian-pacific-to-buy-kansas-city-southern-news-report-says/

And here is an article from Railfan & Railroad's RailNews which is free to read too:

http://railfan.com/its-official-canadian-pacific-kansas-city-southern-announce-merger/

This article says the name of the new company will be Canadian Pacific Kansas City. Canadian Pacific Kansas City? I dunno if that name will be embraced north of the border.
Richard "Tony" Held

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John Bohon
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Re: Canadian Pacific Wants To Buy Kansas City Southern

Postby John Bohon » Wed May 05, 2021 3:48 pm

In the month and a half since this news broke there has been one very interesting development, that being the bid by Canadian National to merge with KCS. Since the KCS has already approved CP as a partner I suspect this is more a move to position CN for whatever concessions they are looking for. What is a little hard to imagine is that unlike the proposed NS merger a few years back there seems to be no uproar over the fact a US railroad is being sold to a Canadian Company. I did not expect it to be as loud as the cry when NS was fighting the merger I did expect some to make a fuss.

Another topic to consider is will this merger set off another round of Class I railroad mergers? NS is getting rid of locomotives, people, and other assets as fast as they possibly can in the name of PSR. This is exactly what companies do to make themselves look more attractive to others that may buy them. The other railroads have surely known this was coming and are lining up their ducks for their response. In the east NS was the premier railroad a few years ago when Wich Moorman was running the show but today they have fallen into the trap of not caring about what the customers want or need. I have been watching the railroads do this all my life trying to shrink there way to bigger profits. Today instead of NS being the premier railroad in the east we have no premier railroad in the east. We only have CSX and their clone. Perhaps I should say clown.

It should be interesting to see how this ends. I am afraid the merger will only lead to more consolidations in the near future.

John Bohon

tom c
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Re: Canadian Pacific Wants To Buy Kansas City Southern

Postby tom c » Wed May 05, 2021 7:11 pm

Thanks John for your post. I like what you say.

Tom C.
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SOO2719
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Re: Canadian Pacific Wants To Buy Kansas City Southern

Postby SOO2719 » Thu May 06, 2021 8:23 pm

Good points, John.
I, too, am concerned that this will cause another round of mergers, something we definitely do not need. We need balanced competition in the railroad world--and the business world as a whole.
I am sick and tired of mega mergers, be they railroad or otherwise. If you ask me, big companies do not care about employees or customers, only the bottom line.
Richard "Tony" Held

"Trackside with Tony"
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SOO2719
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Re: Canadian Pacific Wants To Buy Kansas City Southern

Postby SOO2719 » Thu May 13, 2021 8:42 pm

Canadian National has apparently skunked Canadian Pacific in its bid for Kansas City Southern (article is free to read):

https://www.trains.com/trn/news-reviews/news-wire/kansas-city-southern-accepts-canadian-national-merger-offer/

If you ask me, it isn't over by a long shot, what with the steep regulatory hurdles.
Richard "Tony" Held

"Trackside with Tony"
http://www.tonyheld.hoboandbowser.net/category/trackside/

John Bohon
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Re: Canadian Pacific Wants To Buy Kansas City Southern

Postby John Bohon » Sun Sep 05, 2021 3:27 pm

From the latest news items I found it looks like they are back to negotiating with CP. The one thing for certain is that regardless of who KCS eventually merge with the big losers will be the employees who will be put out of jobs and the customers who see the service go even further into the toilet.

John Bohon

tom c
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Re: Canadian Pacific Wants To Buy Kansas City Southern

Postby tom c » Sun Sep 05, 2021 7:02 pm

John, i find what you said interesting. If the CP mergers goes into effect, it is an end to end merger and I dont see many going away. Maybe some white collar in the head office but the rest are needed.

Tom C.
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A student of the Southend RGS!

John Bohon
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Re: Canadian Pacific Wants To Buy Kansas City Southern

Postby John Bohon » Mon Sep 06, 2021 8:55 am

Rest assured jobs will be lost. Shops will be closed or greatly reduced in workforce. Most likely the KCS main shop where ever it is. The CP shop will surely have the capacity to add the KCS units especially the reduction in numbers due to PSR. Divisions will be extended and crew districts lengthened so train crews will be lost. The track department of KCS, especially traveling gangs, will be combined with CP resulting in job losses. With all of this there will also me mid level management jobs deemed duplicate and eliminated. I would not be surprised to see the entire KCS main office staff combined with CP and either you move or get cut. Many may have no option to move. The primary savings in virtually every merger is perceived to be in the reduction of employees. In this age where having an employee is the worst option on the table this one will be no different. It may take a few years but the jobs will surely be gone.

John Bohon

SOO2719
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Re: Canadian Pacific Wants To Buy Kansas City Southern

Postby SOO2719 » Thu Sep 16, 2021 11:05 pm

Canadian National has given up its attempt to acquire Kansas City Southern:

https://railfan.com/canadian-national-gives-up-bid-for-kansas-city-southern/

Canadian Pacific's revised bid for KCS has been accepted:

https://railfan.com/canadian-pacific-kansas-city-southern-prepare-for-a-historic-merger/

I wonder why CP insists on calling the merged road "Canadian Pacific Kansas City", rather than simply merging KCS and keeping the CP name like it did with Soo Line and the Dakota, Minnesota, and Eastern. At least CN would have kept the KCS name alive (or so they claimed they would).
Richard "Tony" Held

"Trackside with Tony"
http://www.tonyheld.hoboandbowser.net/category/trackside/


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