Kansas City Southern Railroad is accepting a $27 billion deal from Canadian Pacific Railway, creating the first railroad spanning the U.S., Canada, and Mexico.
The companies valued the cash and stock deal at $31 billion including the assumption of debt.
The deal still needs the approval from shareholders, Mexican regulators and the U.S. Surface Transportation Board.
The merger will enlarge Canadian Pacific’s network by 50% to 20,000 miles of track from Vancouver to Veracruz, Mexico.