Question

Why does Canadian Pacific want to acquire Norfolk Southern? Do you believe there is a compelling economic rationale for the merger?

Answer 1

jtlyn ns already owns cn

Step-by-step explanation:

Answer 2

Drawing inferences from the Case Study "CANADIAN PACIFIC (CP) BID'S FOR NORFOLK SOUTHERN (NS)"

It is explicitly stated in paragraph 3 that the CP believes that the merger would be beneficial to the rail transport industry as it would help meet growing demands in the sector.

Also, in the twelfth paragraph, CP states that the industry stakeholders are demanding a "strong, healthy and high performing rail system". He indicates that the merger would bring about the needed change.

According to the Justice Department, the proposal is structured in such a way that it limits the independence of NS. It also appears that CP is pushing too hard because at the time of these events, the Surface Trasportation Board was yet to complete its reveiw of the proposal.

It is safe therefore to say that CP wants to acquire NS to expand their market share. There is no affirmation in the casestudy from a thirdparty to CP about the potential benefits of the merger.

Therefoe there is no compelling economic rationale to the public for the proposed expansion.

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