Canadian Pacific ends talks with fellow railroad operator CSX about a possible deal

Markets Associated Press

Canadian Pacific Railway says it has ended talks with U.S. counterpart CSX about a possible combination and plans no more discussions about a deal.

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The railway operator did not say why it ended talks, but it did note in a brief statement that regulatory concerns appear to be a major deterrent for railroads considering combinations.

Several reports surfaced recently that CSX had rejected a merger offer from Canadian Pacific Railway Ltd. Both railroads declined to comment on those reports, but CSX CEO Michael Ward said last week that regulators would likely take a cautious approach to any railroad consolidation deals.

Besides Jacksonville, Florida-based CSX Corp., the other large railroads are Norfolk Southern, Union Pacific, BNSF and Canadian National.

CSX shares are down more than 3 percent to $32.74 in premarket trading.