Toronto Stocks Rebound; CP, KCS Agree to Seal the Deal

09/15/2021 | 12:17pm

By Adriano Marchese

Shares in Toronto were higher at midday as energy minerals and process industries stocks carried the indexes in the session. In mergers and acquisition news, Canadian Pacific Railway Ltd. agreed to acquire Kansas City Southern in a cash-and-stock transaction that gives it a roughly $31 billion enterprise value, ending a roughly one-year takeover battle with bidding rival Canadian National Railway Co.

Rebounding from yesterday's lower close, Canada's S&P/TSX Composite Index was up 0.25% at 20605.63 mid-trading, while the blue-chip S&P/TSX 60 rose 0.23% to 1231.24.

Canadian Pacific Railway Ltd. shares rose 1% to C$87.34 after it announced an agreement to acquire U.S. railway, Kansas City Southern, after KCS said Canadian Pacific's offer--which values it at $300 a share--is superior to the one it had accepted from Canadian National Railway.

Other market movers:

Shares in Canadian National Railway Co. were up 3.4% to C$150.71 after the company said it would receive a $1.4 billion fee from Kansas City Southern along with its deal-termination notice.

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

(END) Dow Jones Newswires

09-15-21 1216ET

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