(The Canadian Press circulated the following story on July 8.)
MONTREAL — Canadian National Railway has cleared the last regulatory hurdle in its $1-billion acquisition of B.C. Rail after it reached a deal with the federal Competition Bureau.
Under an agreement with the Competition Tribunal, shippers will be able to choose CN or route traffic over B.C. Rail to other connecting railways at Vancouver.
The company said it has negotiated agreements with three connecting railways at Vancouver – Canadian Pacific, Burlington Northern Santa Fe and Union Pacific.
“As we move forward with our partnership, we firmly believe CN’s network and service advantages will strengthen the competitiveness of B.C. Rail shippers and help position northern B.C. for new economic growth,” CEO Hunter Harrison said in a release.
CN Rail and the B.C. government announced a partnership last year that would see the company take over the freight operations of B.C. Rail with the government maintaining ownership of the line, which runs from North Vancouver to northern British Columbia.
The $1-billion acquisition is expected to close by mid-July. Under the deal, CN plans to cut about 430 B.C. Rail jobs.