Canadian Pacific has agreed to buy Kansas City Southern for $25bn, in what would the largest deal on the year, according to people with knowledge of the matter.
The Calgary-based company has offered to buy the US freight railroad group for $275 per share in a cash and stock offer.
Kansas City Southern’s board has approved the bid and the two companies have received the approval of the US Surface Transportation Board.
The transaction is expected to be announced on Sunday, said the people with knowledge of the matter.
The deal comes as US-Mexico trade is expected to pick up following the victory of Joe Biden in the 2020 US presidential elections against Donald Trump.
The two companies could not be immediately reached for comment.