The Surface Transportation Board (STB) has approved the acquisition of Kansas City Southern Railway Company (KCS) by Canadian Pacific Railway Limited (CP).

The ruling has numerous criteria intended to reduce negative environmental effects, preserve competition, safeguard railroad workers, and advance effective passenger rail, including an extraordinary seven-year oversight term. The first railroad offering single-line service spanning Canada, the United States and Mexico will be created by the merger of the two railroads, which will take the name Canadian Pacific Kansas City (CPKC). Traffic using the single-line service will experience a shorter trip time as a result of the transaction. It will do away with the requirement for traffic flowing between the two currently independent CP and KCS systems to be exchanged. By increasing efficiency, the new CPKC system will be better equipped to compete for traffic with the other major Class I carriers.