North American railroad operator Canadian Pacific Railway has reportedly approached international transportation company CSX Corporation with a merger plan last week.
The Wall Street Journal also revealed that reports have emerged that CSX rejected the offer from Canadian Pacific, which would have been a significant development in the American railroad industry.
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If the potential merger plan was accepted, it would have formed a company with a combined market value of $62bn. The combined firm would have had a total of $18bn in annual revenue and more than 35,000 miles of track under control.
The second-biggest railway operator by revenue, Canadian Pacific has a market value of approximately $32bn, while the third-largest US carrier CSX holds a market value of $30bn.
However, Reuters reported that both the Canadian Pacific spokesman Martin Cej and CSX spokeswoman Melanie Cost refused to comment on the speculations.
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According to the federal data, six major railroads operating in the US generated $2.15bn through transporting crude in 2013 compared with $25.8m in 2008.
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By GlobalDataIn this market, CSX holds authority over the rails that run from Midwest to refineries on the US East Coast, while Canadian Pacific controls the rails to North Dakota oil-loading terminals.
