Canadian Pacific Railway announced it will acquire Kansas City Southern in a deal worth $29 billion.
The newly merged company will be named Canadian Pacific Kansas City. The railways say the deal had unanimous support from both boards. The merger will now need to be approved by the U.S. Surface Transportation Board.
If approved, the deal will be the first merger of its kind since the 90s.
The move comes as trade between the U.S., Mexico, and Canada is set increase under the USMCA.