Issue link: https://www.e-digitaleditions.com/i/1388570
July 2021 / 9 which would face more regulatory oversight and approvals. CNR, Montreal, QC, was founded in 1919 and serves Canada and the Midwestern and Southern US. CPR, Calgary, AB, was founded in 1881 and serves Canada and routes" and its voting trust was already approved. Either merger plan could be possible, but the CNR merger with stricter rules would be more complicated to complete. In late May, KCS decided to accept the buyout from CNR, triggering a more complex merger process, considering the merits of both offers in April 2021. CPR informed the US Surface Transportation Board (STB) in March of its intentions and CNR informed the board of its intentions in April. In both potential merger deals, KCS's nearly 6,700 miles of track in the US and Mexico would combine with a railway network that spans from one Canadian coast to the other. The STB is charged by congress to review proposed rail- road mergers and resolve railroad rate and service disputes. The acquisition of KCS would be subject to either pre- or post-2001 merger regulations, depending on the acquiring company, since KCS was made exempt from following the merger rules due to the KCS's size at the time the rules were cre- ated. Post-2001 merger regulations are concerned with whether a merger would enhance competition, whereas pre-2001 merger regula- tions are concerned with whether a merger would adversely affect competition — a distinction that could be important in determin- ing the winning bid. The post-2001 regulations came about after many merger deals occurred that greatly reduced the number of competitors. In fact, the number of railroad com- panies in the US and Canada has decreased to 7 major "class 1" carri- ers from more than 100 in the 1960s. In May, the STB ruled that CNR's bid would be judged under the stricter, post-2001 merger rules. The acquisition would be the first major merger in nearly 20 years. The regulator also ruled that CNR's initial request to use a voting trust for the transaction would be denied because CNR failed to provide a merger agreement. In contrast, the STB said that CPR's competing proposal would fall under the pre- 2001 merger rules because it would "result in the fewest overlapping Stop Using Band-Aids 502.969.3171 info@carriervibrating.com A Division Of Get rid of the band-aids and increase your effciency, improve quality, and create a return on investment. Take the time for permanent repairs using certified Carrier aftermarket parts. Or fix the full problem with a new piece of equipment custom engineered for the application. Ineffcient operation, lower quality production, and repeated downtime. Short term band-aid fxes end up costing you more.