Canadian Pacific Railway’s $31 Billion Acquisition of Kansas City Southern

Sullivan & Cromwell LLP and Bennett Jones LLP represented Canadian Pacific Railway, while Wachtell, Lipton, Rosen & Katz, Davies represented Kansas City Southern in the transaction. Fried Frank acted as counsel to Evercore as financial advisor to the board of Canadian Pacific. Willkie Farr & Gallagher LLP represented BofA Securities and Morgan Stanley & Co. LLC, serving as financial advisors to Kansas City Southern.

Canadian Pacific Railway (CP) exeuted the acquisition of Kansas City Southern (KCS) in a cash and stock deal of approximately $29bn, which includes a $3.8bn assumption of outstanding KCS debt.

Following final approval from the Surface Transportation Board (“STB”), the transaction will combine the two railroads to create the first rail network connecting the U.S., Mexico, and Canada. 

Update: On December 9, 2021, Canadian Pacific Railway Limited’s shareholders voted overwhelmingly in favour of the issuance of CP common shares to Kansas City Southern common stockholders in connection with the proposed CP-KCS combination.

On December 14, 2021, Kansas City Southern completed its transformative US$31-billion merger with Canadian Pacific Railway. 

Canadian Pacific is a transcontinental railway in Canada and the United States with direct links to major ports on the west and east coasts. CP provides North American customers a competitive rail service with access to key markets in every corner of the globe. CP is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise. 

Headquartered in Kansas City, Mo., Kansas City Southern (KCS) (NYSE: KSU) is a transportation holding company that has railroad investments in the U.S., Mexico and Panama. Its primary U.S. holding is The Kansas City Southern Railway Company, serving the central and south central U.S. Its international holdings include Kansas City Southern de Mexico, S.A. de C.V., serving northeastern and central Mexico and the port cities of Lázaro Cárdenas, Tampico and Veracruz, and a 50 percent interest in Panama Canal Railway Company, providing ocean-to-ocean freight and passenger service along the Panama Canal.

Sullivan & Cromwell LLP advised Canadian Pacific Railway with a team led by Frank J. Aquila (Picture) and C. Andrew Gerlach.

Bennett Jones LLP advised Canadian Pacific Railway with a team led by Jeffrey Kerbel and including Harinder Basra, Brent Kraus, Eric Chernin and Annie Tonken (Corporate/Securities), Scott Bodie, Anu Nijhawan and Jared Mackey (Tax), Karen Dawson and Mark Powell (Finance), Carl Cunningham (Employment) and Melanie Aitken, Robert Staley and Adam Kalbfleisch (Competition/Antitrust).

Wachtell, Lipton, Rosen & Katz represented Kansas City Southern with a team led by Steven A. Rosenblum and Oliver J. Board.

Fried Frank advised Evercore with a team led by corporate partner Philip Richter and included corporate partner Roy Tannenbaum, and corporate associates R. Kirkie Maswoswe and Rati Ranga.

Willkie represented BofA Securities and Morgan Stanley & Co. LLC with a team led by partners Steven Seidman and Laura Delanoy, and included associates Daniel Alster and Ian Morganelli and law clerk Joshua Mathew.

The S&C team advising Canadian Pacific includes Frank Aquila, Andrew Gerlach, Julia Kim, Natalie Lum-Tai, Renata Mascarenhas, Donna Kim and Louell Taye. Ari Blaut, Alan Fishman and Elizabeth Miller advised on finance matters. Marc Treviño, Regina L. Readling and Rebekah A. Kostelak advised on executive compensation matters. Ron Creamer, Davis Wang, Tessa Lee, John Jo and Zachary Feldman advised on tax-related matters. Mehdi Ansari and Daniel Stern advised on intellectual property matters. Matthew Brennan advised on environmental matters. Chris Mann, Eric Kadel and Manon Scales advised on trade regulatory matters. Renata Hesse and Sophia Vandergrift advised on antitrust matters.

The Davies’ team included Vincent A. Mercier, Robin Upshall and Andrew Mihalik (Corporate; Mergers and Acquisitions); Mark C. Katz and Dajena Pechersky (Competition, Antitrust and Foreign Investment); Paul Lamarre (Tax); and Seann D. McAleese (Pensions, Employment and Executive Compensation).

Involved fees earner: Melanie Aitken – Bennett Jones; Harinder Basra – Bennett Jones; Scott Bodie – Bennett Jones; Eric Chernin – Bennett Jones; Carl Cunningham – Bennett Jones; Karen Dawson – Bennett Jones; Adam Kalbfleisch – Bennett Jones; Jeffrey Kerbel – Bennett Jones; Brent Kraus – Bennett Jones; Jared Mackey – Bennett Jones; Anu Nijhawan – Bennett Jones; Mark Powell – Bennett Jones; Robert Staley – Bennett Jones; Annie Tonken – Bennett Jones; Mark Katz – Davies Ward Philips & Vineberg; Paul Lamarre – Davies Ward Philips & Vineberg; Seann McAleese – Davies Ward Philips & Vineberg; Vincent Mercier – Davies Ward Philips & Vineberg; Andrew Mihalik – Davies Ward Philips & Vineberg; Robin Upshall – Davies Ward Philips & Vineberg; R. Kirkie Maswoswe – Fried Frank Harris Shriver & Jacobson; Rati Ranga – Fried Frank Harris Shriver & Jacobson; Philip Richter – Fried Frank Harris Shriver & Jacobson; Roy Tannenbaum – Fried Frank Harris Shriver & Jacobson; Mehdi Ansari – Sullivan & Cromwell; Francis Aquila – Sullivan & Cromwell; Ari Blaut – Sullivan & Cromwell; Matthew Brennan – Sullivan & Cromwell; Ronald Creamer – Sullivan & Cromwell; Zachary Feldman – Sullivan & Cromwell; Alan Fishman – Sullivan & Cromwell; Andrew Gerlach – Sullivan & Cromwell; Renata Hesse – Sullivan & Cromwell; Eric Kadel – Sullivan & Cromwell; Julia Kim – Sullivan & Cromwell; Donna Kim – Sullivan & Cromwell; Rebekah Kostelak – Sullivan & Cromwell; Ha Jin Lee – Sullivan & Cromwell; Natalie Lum-Tai – Sullivan & Cromwell; Christopher Mann – Sullivan & Cromwell; Renata Mascarenhas – Sullivan & Cromwell; Elizabeth Miller – Sullivan & Cromwell; Regina Readling – Sullivan & Cromwell; Manon Scales – Sullivan & Cromwell; Daniel Stern – Sullivan & Cromwell; Louell Taye – Sullivan & Cromwell; Marc Trevino – Sullivan & Cromwell; Sophia Vandergrift – Sullivan & Cromwell; Davis Wang – Sullivan & Cromwell; Oliver J. Board – Wachtell, Lipton, Rosen & Katz; Steven Rosenblum – Wachtell, Lipton, Rosen & Katz; Daniel Alster – Willkie Farr & Gallagher; Laura Delanoy – Willkie Farr & Gallagher; Ian Morganelli – Willkie Farr & Gallagher; Steven Seidman – Willkie Farr & Gallagher;

Law Firms: Bennett Jones; Davies Ward Philips & Vineberg; Fried Frank Harris Shriver & Jacobson; Sullivan & Cromwell; Wachtell, Lipton, Rosen & Katz; Willkie Farr & Gallagher;

Clients: Bank of America Securities; Canadian Pacific Railway Ltd; Evercore Inc.; Kansas City Southern; Morgan Stanley;

Sonia Carcano

Author: Sonia Carcano