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(CPKC)

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North American railroad Canadian Pacific Kansas City Ltd. said it’s not interested in a merger and warned of potential service disruptions as deal activity picks up across the rail industry.

The company — itself a product of a mega-merger just two years ago — said the existing network of six major domestic railroads has shown it’s capable of delivering “near-seamless transportation services” across the continent.

Future improvements could come through alliances rather than acquisitions, CPKC said in the unorthodox statement Aug. 26.

“Any major rail merger poses unique and unprecedented risks to customers, rail employees and the broader supply chain,” the company said.

READ MORE:��Lutnick Says Rail Mergers Could Improve Freight Flow

While the statement didn’t specify a particularly concerning tie-up, it comes about a month after rival Union Pacific Corp. agreed to acquire Norfolk Southern Corp. in a cash-and-stock transaction valuing the company at about $72 billion. The potential merger would form the first domestic transcontinental railroad, and speculation has grown that other railroads would need to combine to remain competitive. Investor Ancora Holdings Group has suggested that CSX Corp. consider a deal with CPKC.

CPKC said today that the company is not interested in participating in immediate rail industry consolidation, despite the suggestions by some that it take part. CPKC does not believe that further rail consolidation is necessary for the industry as currently structured. The… — CPKC (@CPKCrail)

CPKC was formed after Canadian Pacific closed a deal in 2023 for Kansas City Southern valued at about $31 billion. In the Aug. 26 statement, CPKC said it “is not interested in participating in immediate rail industry consolidation” but that’s continuing to pursue industry partnerships.

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