The contest for Kansas City Southern is the newest chapter in the ongoing rivalry between Canadian National Railway (CNR/CNI) and Canadian Pacific Railway (CP.) In this video, we'll look at the interconnected histories of CN and CP Rail, review what happened with each company's respective bids for KCS, and examine what needs to happen for the KCS merger to go through - and what might happen if the deal goes off-track.

#CNRail #CPRail #CanadianInvesting

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Timestamps:
0:00 Introduction
0:54 Why do Canadian National Railway and Canadian Pacific Railway want to merge with Kansas City Southern?
1:28 Disclosure
2:02 SEGMENT 1: The History Between CN and CP
2:31 Canadian Pacific Railway built the first railway in Canada back in 1881
2:47 How Canadian National Railway was formed in 1919
3:22 CP and CN also competed against one another in these completely different industries!
3:46 The lead up to CN's privatization
4:16 CN and CP join the TSX
4:35 CN CEO Hunter Harrison implements Precision Scheduled Railroading
5:05 How Hunter Harrison was recruited to CP and turned the company around
5:53 Hunter Harrison recruits Keith Creel to CP from CN
6:04 CP attempts to merge with two other U.S. railways
6:15 Keith Creel becomes CEO of Canadian Pacific Railway
6:25 SEGMENT 2: Flipping the Packets on CNR/CNI and CP
6:39 CN and CP trade on the TSX and NYSE
6:57 Sector and Industry
7:05 Years Founded
7:13 Market Caps
7:22 Headquarters
7:44 Dividend Facts: Dividend Amount, Pay Schedule, DRIP/SPP and Years of Consecutive Dividend Increases
8:36 INTERMISSION: Please plant a Like to help this video and channel grow!
9:06 SEGMENT 3: CN and CP's Contest for Kansas City Southern
9:26 The unique advantage KCS holds over other North American competitors
9:40 March 2021: Canadian Pacific announces a merger with KCS for $25 billion
9:59 What KCS shareholders would receive from the Canadian Pacific deal
10:22 What would a combined Canadian Pacific-Kansas City Southern look like?
10:32 The two key advantages of the CP/KCS deal
10:51 April 6, 2021: CP and KCS receive letters of support for their merger
11:00 April 20, 2021: CN submits a competing proposal for KCS for $33.7 billion, outbidding CP
11:16 What KCS shareholders would receive from the Canadian National deal
11:31 CN and KCS have a small amount of overlap that CN would divest
11:39 Additional factors to consider in the CN/KCS deal
12:07 CN and CP each have their own websites campaigning in favour of their own mergers with KCS
12:21 They're even competing on who has the better alliteration!
12:26 May 2021: CP decided not to outbid CN's counter-offer
12:44 Kansas City Southern's Board deems CN's offer superior to CP's
12:49 August 10, 2021: CP increases its original bid for KCS to $31 billion
13:18 August 12, 2021: How the KCS Board responded to CP's new bid
13:29 CONCLUSION: What Could Happen Next with CN, CP, and KCS?
13:37 What needs to happen for the CN-KCS merger to go through
13:42 The Surface Transportation Board needs to approve CN's voting trust structure
13:58 KCS shareholders have to vote in approval of the merger with CN
14:11 The Rail Transportation Regulatory Agency of Mexico needs to approve the merger
14:23 The STB will do a comprehensive review of the merger before approving or denying it
14:38 What might happen if only one, or neither, vote passes
14:54 Another possibility: neither railway gets to merge with KCS
15:22 If the deal is derailed before it's completed, the "winner" could stand to lose
15:49 QUESTION: What are your thoughts on the CN/KCS and CP/KCS merger proposals?
16:17 Disclaimer and Outro

Disclosure: At the time of publishing this video, I am long Canadian National Railway (CNR.) I own this stock in my dividend garden.

Disclaimer: I am not a financial advisor. This video is for fun and entertainment purposes only and is not to be construed as financial advice. This video is presented AS IS, without warranty, and the information within might be outdated or inaccurate. Always do your own due diligence or seek the advice of a licensed financial professional. Investing carries risks, and past performance is no guarantee of future results. I am not liable or responsible for any financial decisions you make.