© Reuters. FILE PHOTO: FILE PHOTO: A wagon of a freight train of KCS Railway Company is pictured in Toluca
WASHINGTON (Reuters) – The chairman of the U.S. House Transportation and Infrastructure Committee said on Friday the potential acquisition of Kansas City Southern (NYSE:) railroad should set off “alarm bells” about industry consolidation.
Representative Peter DeFazio, a Democrat, said the deal could spark a “new wave of railroad mergers that stifle competition and trigger industry-wide consolidation.”
He warned “Wall Street will make money from railroad consolidation, but the U.S. economy and workforce will be worse off for it.”
Both Canadian National and Canadian Pacific (NYSE:) have offered to buy Kansas City Southern.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.