NORFOLK, Va. – Canadian Pacific Railway announced Monday that they have terminated efforts to merge with Norfolk Southern Corp.
That includes with withdrawal of a resolution asking Norfolk Southern shareholders to vote in favor of good-faith negotiations between the two companies.
“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,” said CP CEO E. Hunter Harrison.
Norfolk Southern also issued a statement following the announcement:
Norfolk Southern’s board and management team are committed to enhancing value for shareholders. Since the company’s new management team was appointed, Norfolk Southern has been focused on implementing a strategic plan to streamline operations, reduce expenses and maintain superior customer service levels.
The Norfolk Southern team has made significant progress and is on track to achieve annual productivity savings of more than $650 million and an operating ratio below 65 percent by 2020. We are confident the continued execution of our plan will deliver superior value to all of the company’s stakeholders by best positioning Norfolk Southern to succeed.
We thank our shareholders for their input and support throughout this process and our employees for their hard work and dedication to strengthening Norfolk Southern as a critical component of the nation’s transportation infrastructure.
Additional updates will be posted as they become available.