By Adriano Marchese 
 

Canadian Pacific Railway Ltd. said Thursday that it won't downgrade any lines after Canadian National Railway Co. said it would ask a U.S. regulator to force a divestiture of certain lines east of Kansas City.

The Canadian railroad responded to a notice of intent by CN Rail that it would file an application asking the Surface Transportation Board to force a divestiture of Kansas City Southern's lines east of Kansas City as part of its regulatory review of the proposed combination.

CP Rail and KCS railways completed their proposed combination in mid-December for an enterprise value of US$31 billion.

"A future [Canadian Pacific Kansas City] will not downgrade any lines, these included. Instead, CPKC will maintain existing levels of service on these lines and will not re-route traffic away from these lines, contrary to CN's assertions," the company said.

 

Write to Adriano Marchese at adriano.marchese@wsj.com

 

(END) Dow Jones Newswires

January 13, 2022 13:01 ET (18:01 GMT)

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