KCS, TMM clear potential U.S. antitrust hurdle to TFM transaction (1/25/2005)
1/25/2024Kansas City Southern's plan to acquire Grupo TMM S.A.'s stake in TFM S.A. de C.V. no longer will require U.S. antitrust law scrutiny. Today, KCS and TMM announced a 30-day waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 expired without the U.S. Department of Justice requesting additional information on the transaction.
The parties now can consummate their deal to bring The Kansas City Southern Railway Co., Texas Mexican Railway Co. and TFM under the common control of KCS without a U.S. antitrust challenge.
"We believe that this transaction will enhance rail competition in the United States and Mexico, enhancing service for shippers in the North American trade corridor," said KCS Chairman, President and Chief Executive Officer Mike Haverty in a prepared statement.
Last month, KCS and TMM reached an amended sale agreement under which TMM will sell its 51 percent voting interest in TFM to KCS for $200 million in cash, 18 million shares of KCS common stock, $47 million in a two-year promissory note, and up to $110 million payable in a combination of cash and KCS common stock pending a VAT claim with the Mexican government.
The agreement still is subject to KCS shareholder approval, which KCS officials expect to receive by March. The Securities and Exchange Commission currently is reviewing KCS' draft amended proxy statement.
Source: Progressive Railroading Daily News