(The Associated Press dsitributed the following article on June 25.)
KANSAS CITY, Mo. — The proposed merger of Kansas City Southern Industries Inc. and Mexico’s Grupo TMM,S.A., has overcome the first of three regulatory hurdles, Kansas City Southern announced Wednesday.
The company said it had received written approval from Mexico’s Competition Commission, which found the deal would not impede competition within the transportation sector.
The merger still needs the regulatory approval of Mexico’s Foreign Investment Commission and the U.S. Surface Transportation Board.
Under the deal announced in April, Kansas City Southern will change its name to NAFTA Rail and manage Kansas City Southern Railway Co., Texas Mexican Railway Co. and TMM. The new holding company will be headquartered in Kansas City.
Kansas City Southern is a transportation holding company which has railroad investments in the United States, Mexico, and Panama.
Shares of Kansas City Southern closed down 5 cents at $11.80 in trading Wednesday on the New York Stock Exchange. Shares of Grupo TMM were up 22 cents to close at $2.12.