New York (CNN Business) Two of North America's largest railroad companies announced a merger Sunday that would connect freight customers to Canada, the United States and Mexico on a single network for the first time in history. Canadian Pacific CP Kansas City Southern KSU agreed to purchasein a deal worth about $25 billion after discounting $3.8 billion of KCS debt that Canadian Pacific will take on. That could become increasingly important as the USMCA -- the revised NAFTA trade deal between the United States, Canada and Mexico -- takes hold. The combined company would operate 20,000 miles of rail , employing nearly 20,000 people and generating annual sales of about $8.7 billion. The interchange point in Kansas City could remove a roadblock, speeding up shipments by allowing some cargo to remain on the same car.

Source: CNN March 21, 2021 16:07 UTC