CP-KCS deal wins OK from foreign investment committee in U.S.

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CALGARY — Canadian Pacific Railway Ltd. says it has received regulatory approval from the Committee on Foreign Investment in the United States for its acquisition of Kansas City Southern.

CP agreed last year to buy KCS in an agreement valued at US$31 billion, including the assumption of US$3.8 billion of debt.

The deal still requires approval by the U.S. Surface Transportation Board.

The deal closed in December, but the shares of KCS were placed into a voting trust that allows the U.S. railway to operate independently while the U.S. Surface Transportation Board completes its review.

CP says it expects that review to be completed early next year.

The combination of the companies would create the only single-line railroad linking the United States, Mexico and Canada.