Canadian National announced this week an offer to acquire Kansas City Southern in a cash-and-stock transaction valued at $33.7 billion, or $325 per share. The offer, submitted in a letter to KCS’s board of directors, follows a $29 billion offer from Canadian Pacific Railway in March to buy the nation’s smallest Class I railroad.

Under the terms of the proposal, following closing into a voting trust, KCS shareholders will receive $200 in cash and 1.059 shares of CN common stock for each KCS common share. Based on the March 19, 2021, closing price of CN shares, CN’s proposal is valued at $325 per KCS share.

The offer represents a 21% improvement over the current value of KCS’ agreement with CP, CN said in a release.

In the proposal submitted to KCS’s board of directors, CN President and CEO JJ Ruest said combining the companies offers greater choice and efficiencies for customers. He added that CN has long admired KCS’s customer-focused vision and commitment to safety, service and performance.

Canadian Pacific Railway is acquiring Kansas City Southern for $29 billion (USD) in stock and cash, creating North America’s first rail network connecting Canada, the U.S. and Mexico, the companies announced Sunday.

The new company will be called Canadian Pacific Kansas City (CPKC).

While remaining the smallest of six U.S. Class 1 railroads by revenue, the combined company will be much larger and more competitive, operating approximately 20,000 miles of rail, employing close to 20,000 people and generating revenues of approximately $8.7 billion based on 2020 numbers.

The deal values KCS shares at $275 each — 23 percent above Friday’s close — and is subject to approval of the U.S. Surface Transportation Board. CP will assume $3.8 billion in KCS outstanding debt, valuing the deal at $25 million.

ScaleTrains.com, Inc., announced at the Virtual Railroad Hobby Show on Sunday that it acquired M.T.H. Electric Trains’ HO-scale and S-gauge tooling assets at the end of last year.

The acquisition includes steam and diesel locomotives, freight cars and track in both scales. HO tooling includes turbine and electric locomotives, subway sets, passenger cars and other models. Engineering schematics for several all-new steam-era HO projects also were received as part of the agreement.

“M.T.H. is recognized as a leading manufacturer of HO-scale steam locomotives,” ScaleTrains.com President Shane Wilson said in a statement. “M.T.H.’s HO products also allow us to broaden our product line into passenger cars, track and more. We believe there is an opportunity to grow the S market as well.”

Both scales are being melded into ScaleTrains.com’s umbrella of brands, including Rivet Counter. Several molds have been transferred to the ScaleTrains.com factory, and testing is underway.

Two regional U.S. train shows in January are on schedule, although they’re taking different paths to reach rail enthusiasts.

The 36th annual Dallas Area Train Show is going on as planned Jan. 16-17, raising the curtain at the Plano Event Center. Nearly two thousand miles away in Palmer, MA, the Amherst Railway Society Railroad Hobby Show, one of the country’s largest, will host a virtual show a couple of weekends later after shelving its annual in-person event.  

In Plano, amid strict covid-19 protocols, vendors will be selling and clubs will be running trains. The show, sponsored by the North Texas Council of Railroad Clubs, has scaled down to accommodate the safety of guests, vendors and others.

Officials have worked closely with the event center to establish social distancing, masking, temperature screening and restricted entrances and exits, as well as contactless payment. Occupancy, monitored by an app, will be limited to 2,000 people at a time.