Close to 550 Shippers, Stakeholders Support CP-KCS
Combination
Supporters File Letters to the Surface Transportation Board, Cite Competitive Benefits
Supporters Urge the STB to Review the Transaction Efficiently to Realize Benefits to All Stakeholders
May 10, 2021 CALGARY Canadian Pacific Railway Limited (TSX: CP) (NYSE: CP) (CP) today announced that another 131 stakeholders
filed statements with the Surface Transportation Board (STB) on May, 8, 2021 in support of its planned, friendly merger with Kansas City Southern (KCS), bringing the total to close to 550 supporters across the
transportation supply chain in North America.
The statements follow previous filings with the STB in support of the
CP-KCS transaction and those opposing Canadian Nationals counterbid for KCS. Customers and other supporters stated they expect the combination of CP and KCS would, among other benefits, invigorate
transportation competition, expand access to existing and growing markets and provide new service offerings that would improve transit times and reliability along the Canada-U.S.-Mexico corridor.
Last week, in a critical milestone for the regulatory approval process of the CP-KCS combination, the STB approved
CPs use of a voting trust for its proposed combination with KCS. That ruling followed another favorable decision by the STB last month to review the transaction under the waiver granted to KCS in 2001. In reaching this decision, the STB noted
that the two companies once combined would remain the smallest of the Class 1 carriers.
CP is seeking approval from the STB for the combination,
which also remains subject to the approvals of CP and KCS shareholders and other customary closing conditions. The STB review is expected to be completed by the middle of 2022.
For more information on the transaction and the benefits it is expected to bring to the full range of stakeholders, visit FutureForFreight.com.
FORWARD-LOOKING STATEMENTS AND INFORMATION
This news release includes certain forward-looking statements and forward looking information (collectively, FLI). FLI is typically identified by words such as
anticipate, expect, project, estimate, forecast, plan, intend, target, believe, likely and similar words suggesting future
outcomes or statements regarding an outlook. All statements other than statements of historical fact may be FLI.
Although we
believe that the FLI is reasonable based on the information available today and processes used to prepare it, such statements are not guarantees of future performance and you are cautioned against placing undue reliance on FLI. By its nature, FLI
involves a variety of assumptions, which are based upon factors that may be difficult to predict and that may involve known and unknown risks and uncertainties and other factors which may cause actual results, levels of activity and achievements to
differ materially from those expressed or implied by these FLI, including, but not limited to, the following: the timing and completion of the transaction, including receipt of regulatory and shareholder approvals and the satisfaction of other
conditions precedent; interloper risk; the realization of anticipated benefits and synergies of the transaction and the timing thereof; the success of integration plans; the focus of management time and attention on the transaction and other
disruptions arising from the transaction; estimated future dividends; financial strength and flexibility; debt and equity market conditions, including the ability to access capital markets on favourable terms or at all; cost of debt and equity
capital; the pending share split of CPs issued and outstanding common shares; potential changes in the CP share price which may negatively impact the value of consideration offered to KCS shareholders; the ability of management of CP, its
subsidiaries and affiliates to execute key priorities, including those in connection