CP officials confirmed last week that it terminated its efforts and also withdrew its resolution to shareholders of the company asking for votes in favor of the takeover. It is not planning to make any new attempts for the company at this time.
“We have long recognized that consolidation is necessary for the North American rail industry to meet the demands of a growing economy, but with no clear path to a friendly merger at this time, we will turn all of our focus and energy to serving our customers and creating long-term value for CP shareholders,” CP CEO E. Hunter Harrison said. “CP has a proven approach — precision railroading — that delivers superior results for customers, employees, communities and shareholders; [we] will continue to focus on providing the best service, controlling costs, optimizing assets, operating safely and developing the best team of railroaders in the industry.”
When it first publicly proposed the deal, CP said it would enhance competition as well as ease freight congestion and better its service to shippers. NS, which opposed the value CP had placed on it, also reportedly responded on multiple occasions that the transaction could attract regulatory scrutiny.
“The Norfolk Southern team has made significant progress and is on track to achieve annual productivity savings of more than $650 million and an operating ratio below 65% by 2020,” NS said after CP’s confirmation statement. “We are confident the continued execution of our plan will deliver superior value to all of the company’s stakeholders by best positioning Norfolk Southern to succeed.”
