In this regard, on September 15, 2021, CP entered into a Merger Agreement and Plan to acquire KCS.
Afterwards, the notifications of the transaction were sent to the Federal Telecommunications Institute (IFT) on October 4, 2021 and to Cofece on October 5, 2021.
Mexican antitrust authorities will each have 60 business days to review the transaction and issue a resolution.
If the Mexican antitrust authorities do not issue a resolution within the relevant review period (including any extension, if applicable), the transaction will be deemed approved.
The lack of authorization from the Mexican antitrust authorities prevents the parties from closing the transaction in Mexico.
The combined company will create a continental company with the first rail network in the United States, Mexico and Canada and with single line offerings that will provide a dramatically expanded market reach for CP and KCS customers.
CP said it is confident that this historic combination will unlock the full potential of both companies’ networks and people, while providing the best service in the industry to its customers.
In accordance with the Federal Law of Economic Competition and the Federal Law of Telecommunications and Broadcasting of Mexico, the consummation of the transactions contemplated in the merger contract requires the approval of Cofece and the IFT, autonomous constitutional entities in charge of enforcing the Law. Federal Economic Competition in the sectors of their respective jurisdictions, including the review and authorization of concentrations, when appropriate.
These notifications can be sent in parallel and the procedures follow the same rules and legal deadlines.
The merger agreement states that KCS and CP were required to submit immediately, but in any event no later than 30 business days after the date of the merger agreement, each and every notification and report form to the antitrust authorities from Mexico.