CN Receives Overwhelming Stakeholder Support for Combination With Kansas City Southern

More than 400 customers, suppliers, elected officials and other stakeholders have sent letters of support for CN in less than a week, highlighting the pro-competitive benefits of its proposed combination with KCS

MONTREAL, April 26, 2021 (GLOBE NEWSWIRE) -- CN (TSX: CNR, NYSE: CNI) today announced that over 400 customers, suppliers, elected officials and other stakeholders have filed letters with the Surface Transportation Board (“STB”) in favor of CN’s proposed combination with Kansas City Southern (NYSE: KSU) (“KCS”).

This is an overwhelming demonstration of support for CN’s pro-competitive combination, which will create a true USMCA railroad and provide numerous new connections and service options for customers, establishing a seamless single-line service to expand North American trade and power economic prosperity.

The following is a copy of CN’s submission to the STB containing the letters of support:

CN is extremely encouraged by the overwhelmingly positive response to the proposed CN-KCS combination. Today CN is submitting 409 letters from stakeholders supporting the transaction, all of whom first learned of the proposed combination after CN’s public announcement on April 20, just four business days ago. CN expects that many more will submit letters in the coming days.

The enclosed letters come from a wide range of interested parties—from customers, to local governments, to logistics providers, to short line railroads, to rail suppliers. Indeed, a number of the customers whose letters are enclosed previously submitted support for a proposed CP-KCS transaction. While the letters reflect a diversity of perspectives, a few common themes emerge. Many recognize the inherent benefits of longer single-system service, and the value to rail shippers of an extended market reach. Others are enthusiastic about CN’s vision for a CN-KCS combination—a vision that is fundamentally about growing business by becoming more competitive with trucks and creating a true USMCA railroad. Others express appreciation for CN’s willingness to work within the Board’s existing merger rules without seeking a waiver.

CN thanks each of these parties for their support and looks forward to continued conversations with our customers and other interested parties about the proposed CN-KCS combination and why it presents the best solution for the continued growth, development and prosperity of the North American economy.

Respectfully submitted,

Sean Finn