Kansas City Southern Approves Mexican Railroad Bid

Click here to write a Letter to the Editor.

ansas City Southern said Tuesday that its stockholders approved acquisition of Mexico's largest railroad.

KCS said in December that it had agreed to pay $660 million in cash and stock for a 51% voting interest in Grupo Transportacion Ferroviaria Mexicana SA, or TFM.

It said it expects to complete the purchase and take control of TFM on April 1.

TFM operates the main railway system in Mexico. It connects Mexico City, three major ports and the industrial heartland to KCS’s domestic railways at the Laredo, Texas, border.

TFM will operate as an independent Mexican corporation under control of KCS, which also owns the Kansas City Southern Railway Co., the Texas Mexican Railway Co. (known as the “Tex Mex”) and the Gateway Eastern Railway Co.

(Click here for previous coverage.)