Canadian Pacific moving US headquarters out of Minneapolis in $25B deal
Canadian Pacific Railway has acquired Kansas City Southern to create the first United States-Mexico-Candian rail network, Canadian Pacific announced Sunday.
With this roughly $25 billion deal, Canadian Pacific's U.S. headquarters will no longer be at Canadian Pacific Plaza in Minneapolis.
"Calgary will be the global headquarters of CPKC, and Kansas City, Missouri, will be designated as the U.S. headquarters," a news release says. "The Mexico headquarters will remain in Mexico City and Monterrey. CP’s current U.S. headquarters in Minneapolis-St. Paul will remain an important base of operations."
The impact the deal has on Minneapolis and its employees in Minnesota isn't yet known, though the news release does say the deal would create jobs "across the combined network."
CEO Keith Creel told the Star Tribune any changes won't be immediate or mirror Target's decision earlier this month to leave the City Center building, cutting back on the company's amount of office space in downtown Minneapolis.
"Our history in Minnesota runs deep," Creel told the paper. "That role will not be diminished, it just doesn't have the title of U.S. headquarters."
The deal still needs final approval of the Surface Transportation Board, the release says, noting once that happens it will create a single-network transportation offering throughout the region to deliver "dramatically expanded market reach" for customers and "provide competitive transportation service options" while supporting economic growth, as well as efficiency and service improvements that are expected to "achieve meaningful environmental benefits."
“This transaction will be transformative for North America, providing significant positive impacts for our respective employees, customers, communities, and shareholders,” Creel said in a statement.
“This will create the first U.S.-Mexico-Canada railroad, bringing together two railroads that have been keenly focused on providing quality service to their customers to unlock the full potential of their networks. CP and KCS have been the two best performing Class 1 railroads for the past three years on a revenue growth basis.”
Following the approval of the acquisition, Creel will be the new Chief Executive Officer of the company that will be named Canadian Pacific Kansas City (CPKC).
