Canadian National Railway Stock Price, News & Analysis

CN (NYSE: CNI) is advancing its proposal to acquire Kansas City Southern (NYSE: KSU), as KCS's board finds CN's offer potentially leads to a "Company Superior Proposal." CN's acquisition aims to create a leading 21st-century railway, offering KCS shareholders immediate value and future participation in the combined company's growth. CN emphasizes its extensive experience in the U.S. market, and plans to utilize a voting trust for prompt compensation to KCS shareholders. The companies are engaging in confirmatory due diligence to finalize the merger.

CN has submitted a letter to the Surface Transportation Board, advocating for its $33.7 billion acquisition proposal for Kansas City Southern (KCS), valued at $325 per share. In its communication, CN emphasizes the procompetitive nature of its offer in response to claims made by Canadian Pacific that the CN-KCS merger would be anticompetitive. CN argues that the merger would enhance service options for customers, foster competition, and create a more integrated North American railway system. KCS is still evaluating its options under the merger agreement with CP.

Canadian National Railway (CNI) made a cash-and-stock offer valued at $33.7 billion to acquire Kansas City Southern (KCS), proposing $325 per share. This offer exceeds the competing proposal from Canadian Pacific Railway (CP) by over $50 per share. CN reiterated its confidence in gaining regulatory approval, claiming its voting trust structure parallels that of CP’s. The letter emphasizes CN's commitment to enhancing competition and delivering value to KCS shareholders, while disputing CP's misleading statements regarding the proposal.

CN announced a regulatory filing to combine with Kansas City Southern (KCS) under a superior cash-and-stock proposal valued at $33.7 billion, or $325 per share. The filing seeks to assure the Surface Transportation Board (STB) that the merger would enhance competition and maintain seamless service. CN will also seek the STB's approval for a voting trust, allowing KCS shareholders to receive their payment promptly. The merger would create a more efficient rail network across North America, with reduced greenhouse gas emissions and enhanced service options.

CN has proposed a cash-and-stock transaction to combine with Kansas City Southern (KCS) valued at $33.7 billion, offering $325 per share. This proposal represents a 45% premium over KCS' recent closing price and includes anticipated annual EBITDA synergies approaching $1 billion. The merger aims to create a premier railway network across North America, enhancing trade efficiency while significantly reducing greenhouse gas emissions. CN expects the transaction to be accretive to its Adjusted Diluted EPS in the first year post-acquisition, promising substantial growth and operational benefits.

CN Reports Record Grain Shipment Performance

On April 5, 2021, CN (CNI) announced it moved 2.95 million metric tonnes (MMT) of western Canadian grain in March 2021, surpassing last year's record of 2.74 MMT and 19% above the three-year average. In Q1 2021, CN transported 8.2 MMT of grain, breaking the previous record of 7.0 MMT from 2017, a 25% increase over the three-year average. Total grain moved this crop year reached 22.7 MMT, up 19% from the prior year. CN attributes this success to over $10B in investments since 2018 and ongoing collaboration with supply chain partners.

CN (TSX: CNR) (NYSE: CNI) has finalized an agreement with Watco for the sale of approximately 250 miles of non-core track in Ontario and 650 miles of branch lines in Wisconsin and Michigan. This follows a sale process initiated in July 2020. Watco will handle freight operations and the Agawa Canyon Train Tour, while CN maintains strategic connections to its tri-coastal network. The U.S. rail line acquisition is subject to regulatory approval. Terms of the deal remain undisclosed, with the focus on enhancing operational efficiency and market connectivity.

CN will release its first-quarter 2021 financial results on April 26, 2021, at 4:01 p.m. ET. A conference call led by JJ Ruest, president and CEO, will follow at 4:30 p.m. ET, discussing the results and outlook.

Telephone participants can join by dialing 1-866-324-3683 (Canada/U.S.) or 1-509-844-0959 (International), entering passcode 9369407. The session will also be webcast live with accompanying slides on CN's investor website.

On March 23, 2021, CN (CNI) announced the nomination of two new directors, Denise Gray and Justin Howell, to its Board, achieving gender parity among independent directors a year ahead of schedule. Gray, with a background in lithium-ion battery manufacturing, and Howell, an investment manager with extensive corporate finance knowledge, will enhance the Board's strategic vision. Also, Margaret McKenzie stands for election, bringing financial expertise. Starting in 2021, 30% of executive bonuses will be linked to ESG metrics. CN's annual meeting is scheduled for April 27, 2021.