Resuming repurchase after Canadian National abandons Kansas City transaction


The Canadian National Railway (CN Rail) train was set up to support the Wet Sweat Nation, which is trying to stop the construction of the British Columbia coastal gas link pipeline in Tyendinaga, Tyendinaga Mohawk Territory. Pass through wooden pallets placed by residents of the camp. , Canada, Ontario, February 26, 2020. (Alex Filipe / Reuters)

Canadian National Railway Co. announced on Friday that it will resume a previously approved share repurchase a few days after leaving the $ 29.6 billion deal with US rail operator Southern Kansas City.

Canada’s largest railroad is expected to complete the repurchase of the remaining $ 1.1 billion ($ 869.02 million) by the end of January next year, the statement said in a statement.

The company, which was criticized by some investors for failing to acquire Kansas City Southern, improved its operating profit by C $ 700 million in 2022 by improving labor productivity and reviewing its non-rail business. He said he was aiming.

We reaffirmed our 2021 goal of increasing adjusted earnings per share and free cash flow by double digits.

With Canadian National abandoning its approach to southern Kansas City, rival Canadian Pacific Railway Co., Ltd. will acquire a US peer and conclude a deal to create the first direct rail link between Canada, the United States and Mexico. Is done.

($ 1 = 1.2658 Canadian dollars)