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JADIAN PACI 1881 H CP NEWS www.cpr.ca ( TSX : CP ) ( NYSE : CP ) FOR IMMEDIATE RELEASE KANSAS CITY Lines KANSAS CITY SOUTHERN de México , Canadian Pacific and Kansas City Southern Execute Agreement to Combine , Creating First Single - Line Rail Network Linking U.S. - Mexico - Canada Stock and Cash Transaction Represents an Enterprise Value of Approximately $ 31 Billion Expected to Create Annualized Synergies of Approximately $ 1 Billion within Three Years Historic Combination Enhances Competition , Creates New Options for Customers , and Supports Economic Growth in North America Companies to Host Investor Conference Call Thursday at 8 a.m. ET Calgary and Kansas City , Mo. - Sept. 15 , 2021 - Canadian Pacific Railway Limited ( TSX : CP , NYSE : CP ) ( “ CP " ) and Kansas City Southern ( NYSE : KSU ) ( “ KCS ” ) today announced they have entered into a merger agreement , under which CP has agreed to acquire KCS in a stock and cash transaction representing an enterprise value of approximately USD $ 31 billion¹ , which includes the assumption of $ 3.8 billion of outstanding KCS debt . The transaction , which has the unanimous support of both boards of directors , values KCS at $ 300 per share , representing a 34 % premium , based on the CP closing price on Aug. 9 , 2021 , the date prior to which CP submitted a revised offer to acquire KCS , and KCS ' unaffected closing price on March 19 , 2021² . " Our path to this historic agreement only reinforces our conviction in this once - in - a - lifetime partnership , " said CP President and Chief Executive Officer Keith Creel . " We are excited to get to work bringing these two railroads together . By combining , we will unlock the full potential of our networks and our people while providing industry - best service for our customers . This perfect end - to - end combination creates the first U.S. - Mexico - Canada rail network with new single - line offerings that will deliver dramatically expanded market reach for CP and KCS customers , provide new competitive transportation options , and support North American economic growth . " " We are glad to be partnering with CP to create a railroad that is able to compete by providing the best value for the transportation dollar , " said KCS President and Chief Executive Officer Patrick J. Ottensmeyer . " The CP - KCS combination will not only benefit customers , labor partners , and shareholders through new , single - line transportation services , attractive synergies and complementary routes , it will also benefit KCS and our ¹ Except where noted , all figures are in U.S. dollars . 2 Based on KCS closing share price of $ 224.16 as of March 19 , 2021 and CP closing share price of CAD $ 91.50 ( at 1.2565 FX rate ) as of Aug. 9 , 2021 . 1