Media Kit » Try RailPrime™ Today! »
Progressive Railroading
Newsletter Sign Up
Stay updated on news, articles and information for the rail industry

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

View Current Digital Issue »


Rail News Home M&A


Rail News: M&A

CN to seek 'legal relief' to close on EJ&E transaction by year's end


In late July, the Surface Transportation Board announced it likely won't complete its environmental review of Canadian National Railway Co.'s proposal to acquire a major portion of the Elgin, Joliet & Eastern Railway Co. by year's end, as CN had hoped. Now, the Class I will seek "legal relief" in an attempt to close on the transaction.

"Given the significant uncertainty on the date for completion of our proceeding after issuance of the STB's time limits decision, and the fact that U.S. Steel has read the Stock Purchase Agreement to require that this transaction close by Dec. 31, 2008, CN contacted U.S. Steel last week to formally request the extension of the deadline," said CN President and Chief Executive Officer E. Hunter Harrison in a prepared statement. "U.S. Steel is prepared to cooperate with CN towards the goal of closing the transaction in 2008, but it will not agree to extend the SPA. Therefore, we need a decision in this case."

The Class I will provide more detail in the near future on the legal relief it plans to seek. In the meantime, CN will continue to work with communities along the line to reach voluntary mitigation agreements addressing environmental concerns associated with traffic increases on the line.