Deals
Canadian Pacific Said to Explore Norfolk Southern Takeover
- Railroads said to have held early-stage talks about merger
- Analyst sees deal value, but questions regulatory prospects
Canadian Pacific On Track to Take Over Norfolk Southern?
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Canadian Pacific Railway Ltd., the second-biggest railroad in Canada, is exploring a takeover of U.S. carrier Norfolk Southern Corp. in a fresh attempt to consolidate the North American industry, according to people familiar with the matter. The shares surged on the news.
Canadian Pacific is raising financing and has held early-stage merger talks with Norfolk Southern, which is valued at about $24 billion, said two of the people, who asked not to be identified because deliberations are private. Discussions are preliminary and talks may not progress or lead to a deal, they said. Representatives for Canadian Pacific and Norfolk declined to comment.