(Calgary) The merger of Canadian Pacific Railway with Kansas City Southern Railway is now official.

The new venture, named Canadian Pacific Kansas City, is the result of the continent’s first major rail merger in more than 20 years.

It brings together the two smallest of North America’s seven Class 1 railroads, after the US railroad regulator approved the $31 billion deal last month.

This green light lifted the last obstacle to CP’s offer, creating the only single-line rail network connecting Canada, the United States and Mexico.

U.S. Surface Transportation Board Chairman Martin Oberman said in March that the new company would speed freight times and encourage more competition with the other big five railroads.

CP’s main competitor, Montreal-based Canadian National Railway Company (Canadian National), fought a behind-the-scenes battle for months before CP and the American railroad announced a friendly deal in March 2021.

A month later, KCS switched alliances, saying CN’s cash and stock offer, valued at US$33.6 billion, was superior — but BTS rejected CN’s offer in August. CP was able to conclude its proposed agreement in December 2021.

Stretching from Vancouver to Saint John, New Brunswick, to Houston and Mexico City, CPKC’s new network operates nearly 33,000 kilometers of track and employs nearly 20,000 people.

The company said Friday it would mark the occasion by driving one last spike in Kansas City, Missouri, where the two railroads meet. It is also expected to ground the ground for a new marshalling yard that will house its American operations center.

Shares of CPKC will remain listed on the Toronto Stock Exchange and New York Stock Exchange under the symbol CP and are expected to begin trading under their new name on Tuesday, the company said.

“This unparalleled CPKC network will provide our customers with new opportunities and expanded access to more markets by providing reliable rail service, reducing the number of trucks on the road and increasing rail safety through the implementation CPKC’s industry-leading safety practices,” said CPKC CEO Keith Creel, who led the CP acquisition effort, in a statement.

Terms of the agreement imposed by the STB include keeping gateways — points of connection between the CPKC system and other railroads — open on “commercially reasonable terms” and justifying in writing any fare increases. beyond a certain level on interline movements.