Canadian Pacific and Kansas City Southern merger proposal receives required mexican regulatory approvals

Calgary and Kansas City, Mo. – Nov.26, 2021 – Canadian Pacific Railway Limited (TSX: CP, NYSE: CP) (“CP”) and Kansas City Southern(NYSE: KSU) (“KCS”) today announced that they have received the required regulatory pre-transaction control approvals from the Mexican Federal Economic Competition Commission (“COFECE”) and the Mexican Federal Telecommunications Institute (“IFT”) for the previously announced proposed combination of KCS and CP.

“This important milestone marks the next step on our path to creating the first single-line rail network linking the U.S., Mexico and Canada,” said Keith Creel, CP President and Chief Executive Officer. “This historic combination will add capacity to theU.S. rail network, create new competitive transportation options, support North American economic growth, and deliver important benefits to customers, employees and the environment.”

“We are very excited to be working with CP to bring the benefits of this end-to-end combination to fruition,” said Patrick J. Ottensmeyer, President and Chief Executive Officer of KCS. “Together we will unlock the full potential of our networks to provide new single-line offerings and industry-best service that will dramatically expand competitive transportation options across North America.”

The transaction remains subject to satisfaction of customary closing conditions, including approval from stockholders of both companies. CP’s and KCS’ stockholders are scheduled to vote on the proposed transaction on Dec. 8 and 10, 2021, respectively. Provided the transaction is approved by CP and KCS stockholders, it is expected to close two business days later on Dec. 14.