Canadian Pacific Confirms Termination Of Merger Talks With CSX - Quick Facts

(RTTNews) - Canadian Pacific Railway Limited (CP, CP.TO) announced Monday that exploratory conversations held with CSX Corp. (CSX) about a possible business combination have ended. No further talks are planned.

Canadian Pacific Railway said it proposed an integrated coast-to-coast combination that would improve customer service, promote competition, alleviate congestion in North America - specifically the key Chicago gateway - and generate significant shareholder value. Such a business combination would offer creative alternatives for shippers, greater fluidity, increased capacity and improved efficiency industry-wide.

While regulatory concerns appear to be a major deterrent for many railroads considering combinations, CP said it believes that given the right structure between the right players, and having thoughtful considerations and remedies to address shipper concerns, regulatory approvals are achievable.

Earlier in this month, the Wall Street Journal reported that Canadian Pacific Railway Ltd approached CSX Corp about merging the two railroad operators. The potential hurdle to a deal could be regulatory opposition from the U.S. Surface Transportation Board.