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Train companies allegedly engage in business merger talks

Railway transportation is one of the main ways that certain American industries move their products. Particularly, many oil companies operating in New Jersey and throughout the rest of the nation use trains to transport crude and other oil products to cities far and wide. Different train and rail transportation companies exist in the country and provide businesses with options for choosing which carriers can have their transportation business.

A recent news article suggests that one of America's biggest railway companies may enter into a business merger with one of Canada's largest similar businesses. The American company CSX is reportedly in communications with Canadian Pacific Railway about possible merger plans. The purported talks caused CSX to experience gains to its investors' stock shares.

If the companies merge their new corporate structure would be one of the biggest in the railway industry in North American. Experts anticipate that the merger would bring the companies combined value to more than $60 billion. However, domestic regulatory rules may stand in the way and block the major railway merger from occurring. Neither company is currently offering any information on if rumors of the talks are valid or if the merger will ultimately be pursued.

A successful business merger can be an important part of a company's corporate strategy for growth. Whether the merger is of two major players like CSX and Canadian Pacific or two smaller companies in a less visible industry, a merger can change the corporate make up of the involved organizations. Anyone who would like to learn more about business mergers and acquisitions can choose to speak with New Jersey-based business attorneys who specialize in legal processes related to business planning and development.

Source: USA Today, "Possible rail merger deal propels CSX 10%," Nicole Curtis & Gary Strauss, Oct. 13, 2014

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