Acquisition:

Canadian Pacific (CP) has agreed to acquire Kansas City Southern (KCS) in a stock and cash transaction representing an enterprise value of approximately $31 billion, which includes the assumption of $3.8 billion of outstanding KCS debt. The transaction, which has the unanimous support of both boards of directors, values KCS at $300 per share, representing a 34 percent premium, based on the CP closing price on Aug. 9, 2021, the date prior to which CP submitted a revised offer to acquire KCS, and KCS unaffected closing price on March 19, 2021. (CPR.CA, 1)

Given Canadian Pacifics lack of direct links to the southern United states and Mexico they were missing out on in those markets. With the acquisition of Kansas City Southern they will now have access to the Mexican and southern United States market and predict and added annual revenue of 8 billion dollars.

This acquisition creates great value for Kansas City Southern common shareholders as they will receive 0.489 of Canadian Pacific shares and 90$ in cash for each Kansas City Southern share held.

Merger: Canadian pacific acquiring Kansas City Southern

if possible it would be nice to have 5 reason in each section

• so 5 for why its good for Kansas 5 for Canadian and 5 for both( both is not really imperative since some of the reasons for the individual may overlap)

How does this merger affect both companies, or how does each company benefit from the merger?

please explain and add details