CN-Wisconsin Central deal deemed ‘minor’ by STB

WASHINGTON, D.C. (May 10, 2001) — The U.S. Surface Transportation Board said it will treat the acquisition of Wisconsin Central Transportation Corp. by Canadian National Railway Co. as a minor transaction, paving the way for government approval of the deal in September.

Earlier this year, CN agreed to buy Wisconsin Central, which operates a line between Superior, Wis., and Chicago.

“The simple, straightforward combination of CN and WCTC is already supported by more than 330 shippers, local governments and officials, chambers of commerce, public agencies (including port authorities and economic development agencies), and other railroads,” said CN chief executive Paul Tellier.

On March 17, 2000, the STB imposed a 15-month moratorium on major rail combinations while it prepares new guidelines for approving mergers. The moratorium was prompted by a proposed merger of CN and Burlington Northern Santa Fe Corp., which would have created the largest rail network in North America.

The two railways terminated their deal last July, saying delays caused by the moratorium created too much uncertainty for shareholders.