(The Associated Press circulated the following article on March 14.)
KANSAS CITY — Railroad company Kansas City Southern Industries Inc. will pay Mexican firm Grupo TMM $70 million in cash and stock, part of its agreement last year to buy Transportacion Ferroviaria Mexicana, the largest railroad company in Mexico.
Kansas City Southern bought TFM from Grupo TMM in April for $660 million and has since renamed it Kansas City Southern de Mexico.
As part of that purchase, Kansas City Southern promised to pay an additional cost once it resolved an ongoing tax dispute with the Mexican government over the sale. The company and government officials reached a settlement in September.
Kansas City Southern said late Monday it will pay Grupo TMM $35 million in cash and $35 million in stock. The company said it will also pay Jose R. Serrano International Business, a consultant in the tax case, $9 million.