Canadian Pacific Kansas City (CP.TO) was up 0.6% in US premarket trade on Wednesday after saying it and the Lanco Group/Mi-Jack have sold the Panama Canal Railway Company (PCRC) to an independent division of Moller-Maersk for an undisclosed sum.
PCRC provides ocean-to-ocean freight and passenger services along the Panama Canal and has been a 50/50 joint venture between CPKC subsidiary Kansas City Southern and Lanco Group/Mi-Jack since 1998. In 2024, the PCRC generated revenue of US$77 million and EBITDA of US$36 million.
"We are pleased to have completed this transaction with APM Terminals, a part of A.P. Moller - Maersk, a key strategic partner of CPKC's and major customer of the Panama Canal Railway Company," said Keith Creel, CPKC chief executive officer. "The sale of this non-core asset creates value for our shareholders and reflects our commitment to optimize our assets as we focus on growing our core North American rail business through our unrivalled three-nation network connecting Canada, the United States and Mexico."
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