- REUTERS/Todd Korol
Canadian Pacific Railway has ended its bid for its US counterpart Norfolk Southern, the firm announced Monday.
The Canadian company entered into early-stage talks with Norfolk Southern – the second-largest railroad in the eastern US, valued at about $25 billion – late last year.
Since then, US lawmakers have been pushing back against the deal.
“We have long recognized that consolidation is necessary for the North American rail industry to meet the demands of a growing economy, but with no clear path to a friendly merger at this time, we will turn all of our focus and energy to serving our customers and creating long-term value for CP shareholders,” CP’s CEO, Hunter Harrison, said in a statement.
CP is Canada’s second-largest railroad and made headlines in 2011 and 2012 when activist investor Bill Ackman acquired about 14% of its stock and uprooted the company’s board and management.
Ackman’s Pershing Square is the second-largest shareholder in Canadian Pacific, after T. Rowe Price Associates.
CP tried to mergewith another US railway, CSX Corp., last year, but talks failed.