The U.S. Department of Justice will require Zen-Noh Grain Corp. to divest nine grain elevators so it can acquire 48 elevators from Bunge North America.
CP Rail said it concurs with the Justice Department s objection to CN s proposed use of a voting trust because that merger with KCS would pose greater risks to competition than CP Rail s agreement with KCS.
The U.S. agency said it hasn t yet taken a final position on the merits of the proposed acquisition by CN. However, this proposed acquisition raises sufficient competition concerns on first blush that the CN should be prohibited from using a voting trust, it said in a comment to the transportation regulator.
Even though terms of CN s voting trust are similar to CP s, the Justice Department said the STB has good reason to hold CN s trust to a higher bar, even though it disagrees with voting trusts being used at all.