KSU - Canada National down questions about merger with Kansas City Southern

Canada National Railway (NYSE:CNI) shares are down 1.2% post-market despite meeting approximate earnings and revenue expectations.Canadian National Railway is still targeting double digit Non-GAAP EPS growth and high single digit volume growth in 2021.Company FCF expectations for 2021 remain the same at $3.0B to $3.3B.Canada National is confident that its previously announced merger with Kansas City Southern (NYSE:KSU) will be approved and take place in the second-half of 2022 despite President Biden's recent executive order aimed at increasing competition.Canada National will pay Kansas City Southern $200 in cash and 1.129 shares of CNI (currently trading at $101) for each KSU share (currently trading at $266). Kansas City Southern saw its productivity decline this quarter and decreased its 2021 EPS guidance to $9/share but kept long-term EPS and FCF guidance the same.Rising rail cost inflation and a slowdown in car transportation due to the global chip shortage also shadow the company's outlook.Read about

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Canada National down, questions about merger with Kansas City Southern