CALGARY — Canadian Pacific Railway says it has proposed a merger with U.S.-based Norfolk Southern Corp. to create a transcontinental railroad.
The Calgary-based railway said the proposal includes a sizable premium in cash and stock, although details weren't immediately available.
Canadian Pacific said the merger could create a company with the potential for faster earnings growth than either railway could achieve on its own.
CP said the combined railroad would offer unparalleled customer service and competitive rates to shippers that could satisfy regulators in Canada and the United States.
Canada's second-largest railway also said the merger would alleviate congestion in Chicago by using underutilized hubs that would free up capacity for other railways operating through the city.
CP said it hopes the board of directors for Norfolk Southern will give the offer "due consideration.''
"In short, a combined CP and Norfolk Southern would create capacity for all shippers without creating the need for more infrastructure,'' CP said in a statement Tuesday.