Glacier FarmMedia COVID-19 & the Farm

Global Markets: CP buys Kansas City Southern for US$25 billion

WINNIPEG, March 22 (MarketsFarm) – The following is a glance at the news moving markets in Canada and globally.

– Canadian Pacific Railway (CP) announced on Sunday it has agreed to purchase Kansas City Southern for US$25 billion in an attempt to create a 32,000-kilometre rail network extending into both the United States and Mexico. The transaction is the largest purchase of a U.S.-based asset by a Canadian company since 2016 and Kansas City investors will receive nearly half of a CP share and US$90 for each share they hold, valuing the stock at US$275 each. CP will issue 44.5 million new shares, to be financed both with cash and approximately US$8.6 billion in debt. CP will file the merger with the U.S. Surface and Transportation Board and its review is expected to be completed by next year.

– In a late-stage study in the U.S., AstraZeneca announced on Monday its coronavirus vaccine was 79 per cent effective against symptomatic COVID-19 and 100 per cent effective against severe disease and hospitalization. Of the 20,000 people in the study, there was similar effectiveness amongst those over the age of 65 and no increased risk of blood clots. Many countries in the European Union have previously stopped giving the vaccine to seniors because of these concerns. Germany, France, Belgium and Italy have since reversed their decisions.

– The U.S. Transportation Security Administration announced on Monday the number of air passengers screened in the U.S. on Sunday surpassed 1.5 million for the first time since March 13, 2020. It was the 11th straight day screening volume exceeded one million per day.

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