Canadian Railroad To Buy Illinois Central
Canada’s biggest freight railroad said Tuesday it has agreed to purchase Illinois Central railroad in a $2.4 billion cash-and-stock deal that would create a network spanning nearly 19,000 miles from the Gulf of Mexico through Canada.
The announcement from Canadian National Railway Co. of Montreal comes less than a week after Chicago-based Illinois Central said it was putting itself up for sale. Canadian National would buy 46.1 million of Illinois Central’s 61.4 million shares outstanding at $39 a share and assume $560 million in Illinois Central debt under terms of the agreement.
The deal consists of 75 percent cash and 25 percent Canadian National stock.