U.S. board to announce decision on railroad acquisition deal

(Reuters) – The Surface Transportation Board, which oversees U.S. freight railroads, said it plans to announce on Wednesday whether it will approve or reject Canadian Pacific (NYSE:)’s $31 billion deal to acquire U.S. railroad Kansas City Southern (NYSE:).

The acquisition, which combines the sixth- and seventh-largest U.S. railroads by revenue, was agreed to in 2021. The deal has since closed but Kansas City shares were transferred to a trust and the railroad must operate independently until the board makes a decision.

The board’s chair will hold a press conference Wednesday to discuss the decision.