WASHINGTON – U.S. Sen. Amy Klobuchar of Minnesota on Monday praised an announcement that merger talks between CSX and Canadian Pacific railroads have been called off.
“A CSX-Canadian Pacific Railway merger would have raised major competition concerns in the rail industry, and I am pleased that these companies have broken off their talks,” Klobuchar said. “With ongoing shipping delays putting a major strain on Minnesota agricultural producers, energy consumers, and Iron Range taconite plants, we need to be doing everything we can to promote competition in this industry to help ensure low prices and high-quality services.”
Last week, Klobuchar, a Democrat, wrote to U.S. Attorney General Eric Holder and U.S. Surface Transportation Board Chairman Daniel Elliott, asking both to scrutinize any potential merger of the two companies.
Canadian Pacific issued a news release Monday stating that “exploratory conversations held with CSX Corp. about a possible business combination have ended. No further talks are planned.”
However, Canadian Pacific CEO President Hunter Harrison appeared not to have given up on the idea that railroads need to merge. He scheduled a conference call for Tuesday to discuss “railroad mergers and acquisitions and the need for a comprehensive North American transportation policy.”
“A pro-competition, customer-friendly, safety-focused railway combination is one such solution that could not be ignored on its merits by regulators,” the railroad’s release stated.