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Global Markets: Board blocks CN acquisition of KCS

CN needs to rework takeover deal if it wants to continue

Compiled by Glen Hallick, MarketsFarm

WINNIPEG, Sept. 1 (MarketsFarm) – The following is a glance at the news moving markets in Canada and globally.

– Canadian National Railway’s (CN) attempt to acquire the Kansas City Southern Railway (KCS) was dealt a severe blow on Tuesday when the United States Surface Transportation Board (STB) blocked the deal. The STB stated the terms of the voting trust, which would keep KCS assets separate from those of CN, violated federal regulations. That included CN’s proposal to divest the Baton Rouge to New Orleans line, which raised the ire of U.S. rail passenger carrier Amtrak. The KCS board of director supports CN’s bid over the rival offer from Canadian Pacific Railway. In order to have a chance of receiving STB approval CN must rework its proposal.

– Ahead of an OPEC meeting, Iraqi Finance Minister and Deputy Prime Minister Ali Allawi wrote in the London-based Guardian on Tuesday that OPEC needs to begin moving away from fossil fuel dependency while pursuing renewable energy. The article, co-written with Fatih Birol, the executive director of the International Energy Agency, stated, “if oil revenues start to decline before producer countries have successfully diversified their economies, livelihoods will be lost and poverty rates will increase.” The 13 members of OPEC meet virtually on Wednesday to discuss oil production volumes.

– Reports said on Tuesday that China-based tech giant Didi Global Inc. will see its drivers form a labour union. The drivers are primarily part-time employees who are devoid of any benefits. As part of President Xi Jinping’s ‘Common Prosperity’ campaign, the Chinese government has imposed rules to curb excessive work and protect millions of blue-collar workers from exploitation. Another aspect to the campaign has been to reform the largely ineffective All-China Federation of Trade Unions.

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