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U.S. Regulators Approve Major Rail Merger Over Objections of Unions

HeadlineMar 16, 2023

The Biden administration has approved a $31 billion merger between Canadian Pacific Railway and Kansas City Southern — the first major rail merger approved by U.S. regulators in more than two decades. The new company, named Canadian Pacific Kansas City, will operate freight rail traffic over more than 20,000 miles of track in the United States, Mexico and Canada. The merger brings the number of major U.S. rail firms down to six. It follows February’s derailment of a freight train in Ohio that spread toxic chemicals across the town of East Palestine. This week, the inter-union coalition Railroad Workers United passed a resolution opposing the merger, noting that rail industry consolidation has resulted in less competition, fewer jobs, severe traffic congestion, dissatisfied shippers, delayed passenger trains and serious safety concerns.

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