KCS rail merger hits regulatory snag

There has been a small regulatory setback in an effort to create the first rail line to link the U.S. to Canada and Mexico.

The U.S. Surface Transportation Board rejected a request by Canadian National in its bid for Kansas City Southern.

CN wants to set up a voting trust that would allow it to own the railroad while regulators review the deal. The board said “no.”

It said it will review CN’s plan when it includes a detailed merger agreement. CN says that it is confident the board will agree the voting trust is in the public’s best interest as part of the $34 billion dollar deal.

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