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Researched by Industrial Info Resources (Sugar Land, Texas)--It would have created a freight railway with combined active projects worth nearly $800 million as tracked by Industrial Info, but Canadian Pacific Railway's (NYSE:CP) (Calgary, Alberta) attempted merger with Norfolk Southern Corporation (NYSE: NSC) (Norfolk, Virginia) was apparently not meant to be.
After months of being rebuffed by Norfolk Southern, Canadian Pacific officially threw in the towel on Monday. Canadian Pacific also withdrew a resolution asking Norfolk shareholders to vote in favor of negotiations between the two companies.
Canadian Pacific issued a statement which said the merger would have created a "true end-to-end railroad that would enhance competition, ease freight congestion now and into the future, improve service to shippers, better support the economy and generate significant shareholder value for both companies."
Canadian Pacific Chief Executive Officer E. Hunter Harrison said: "We have long recognized that consolidation is necessary for the North American rail industry to meet the demands of a growing economy, but with no clear path to a friendly merger at this time, we will turn all of our focus and energy to serving our customers and creating long term value for CP shareholders."
Canadian Pacific operates in Canada and the United States, while Norfolk Southern operates in the eastern U.S.
In rejecting the acquisition overtures, Norfolk Southern maintained it was already well into its own strategic plan to streamline operations and cut expenses. The railway's long-term plan calls for annual productivity savings of more than $650 million by 2020, starting with $130 million in savings this year.
Faced with falling profits, both railways have targeted substantial cuts for this year and beyond. In January, Norfolk Southern said it would reduce the freight railway's employee headcount by 2,000 by 2020. Canadian Pacific plans to slash 1,000 jobs this year. For more information, see January 22, 2016, article - Canadian Pacific, Union Pacific Railways Hammered by Fall in Fourth-Quarter 2015 Earnings, to Cut 2016 Capex and January 28, 2016, article - Norfolk Southern Railway Announces Cost Cuts as Profits Fall; Canadian National Sees Earnings Gain.
Industrial Info is tracking 22 active Norfolk Southern projects worth $532.80 million. Norfolk Southern's Portageville Freight Rail Bridge Replacement in Buffalo, New York has a total investment value of $70 million. The project will replace the existing iron truss rail bridge with a 900-foot steel arch, single-track rail bridge. Completion is expected by the end of 2018. Industrial is also tracking nine Canadian Pacific projects valued at $355.5 million, including the $54 million 2016 upgrade and rehabilitation program for the 1,725-mile rail system in Minnesota.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
After months of being rebuffed by Norfolk Southern, Canadian Pacific officially threw in the towel on Monday. Canadian Pacific also withdrew a resolution asking Norfolk shareholders to vote in favor of negotiations between the two companies.
Canadian Pacific issued a statement which said the merger would have created a "true end-to-end railroad that would enhance competition, ease freight congestion now and into the future, improve service to shippers, better support the economy and generate significant shareholder value for both companies."
Canadian Pacific Chief Executive Officer E. Hunter Harrison said: "We have long recognized that consolidation is necessary for the North American rail industry to meet the demands of a growing economy, but with no clear path to a friendly merger at this time, we will turn all of our focus and energy to serving our customers and creating long term value for CP shareholders."
Canadian Pacific operates in Canada and the United States, while Norfolk Southern operates in the eastern U.S.
In rejecting the acquisition overtures, Norfolk Southern maintained it was already well into its own strategic plan to streamline operations and cut expenses. The railway's long-term plan calls for annual productivity savings of more than $650 million by 2020, starting with $130 million in savings this year.
Faced with falling profits, both railways have targeted substantial cuts for this year and beyond. In January, Norfolk Southern said it would reduce the freight railway's employee headcount by 2,000 by 2020. Canadian Pacific plans to slash 1,000 jobs this year. For more information, see January 22, 2016, article - Canadian Pacific, Union Pacific Railways Hammered by Fall in Fourth-Quarter 2015 Earnings, to Cut 2016 Capex and January 28, 2016, article - Norfolk Southern Railway Announces Cost Cuts as Profits Fall; Canadian National Sees Earnings Gain.
Industrial Info is tracking 22 active Norfolk Southern projects worth $532.80 million. Norfolk Southern's Portageville Freight Rail Bridge Replacement in Buffalo, New York has a total investment value of $70 million. The project will replace the existing iron truss rail bridge with a 900-foot steel arch, single-track rail bridge. Completion is expected by the end of 2018. Industrial is also tracking nine Canadian Pacific projects valued at $355.5 million, including the $54 million 2016 upgrade and rehabilitation program for the 1,725-mile rail system in Minnesota.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
