Merger update: CN, KCS CEOs to address Wolfe conference

CN President and Chief Executive Officer JJ Ruest and Kansas City Southern President and CEO Patrick Ottensmeyer will address the 14th Annual Wolfe Research Global Transportation and Industrials Conference on May 26.

Ruest and Ottensmeyer will deliver opening remarks followed by a discussion of the strategic and financial benefits of the proposed combination of CN and KCS, according to a press release issued by both companies.

Last week, KCS announced its board unanimously determined that the acquisition proposal it received May 13 from CN continues to constitute a "company superior proposal" under KCS's pending merger agreement with Canadian Pacific. As a result, KCS terminated the CP merger agreement and entered into a merger agreement with CN.

Combining with CN will provide shippers access to new single-line transportation services and increase competition among the Class Is, Ottensmeyer said last week in a press release.

"Our companies’ cultures are strongly aligned, and we share a commitment to environmental stewardship, safe operations, reliable service and outstanding performance," Ottensmeyer said. "As a larger continental enterprise with complementary routes and an enhanced platform for revenue growth, capital investment, and job creation, we will be positioned to deliver on the transaction’s powerful synergies which will create new growth opportunities for our customers, employees, labor partners, communities and shareholders."