Canadian Pacific said it is ending its nearly $30 billion takeover bid for rival railroad Norfolk Southern.
Norfolk Southern had rejected Canadian Pacific's bids because it questioned whether regulators would approve it.
A deal would have expanded Canadian Pacific's rail network across the U.S. Calgary, Canada-based Canadian Pacific operates railroads in Canada and parts of the U.S. Midwest and South, while Norfolk Southern of Norfolk, Virginia operates railroads along the East Coast, Midwest and South.
Norfolk Southern employs thousands in Hampton Roads and pumps money into the local non-profits and charities.
"The corporate headquarters stay here, and the benefits of corporate headquarters stay here in Hampton Roads," said Peter Shaw, professor of Business Management at Tidewater Community College.
Shaw says that the decision to stay also has the potential to drive more business in town, especially when combined with the recent announcement that ADP will be opening up an office in Norfolk.
"When you are dropping 1,800 jobs into the center of the city, that's a very noticeable number and the rest of the corporate heard might say oh what's going on there, maybe we want to take a look," explained Shaw.
Shares of Norfolk Southern Corp. slipped nearly 2 percent in trading before the stock market open Monday. Shares of Canadian Pacific Railway Ltd. were unchanged.
Norfolk Southern Corporation issued the following statement regarding Canadian Pacific's withdrawal of its unsolicited acquisition proposal and its related shareholder resolution:
Norfolk Southern's board of directors and management team are committed to enhancing value for shareholders. Since the company's new management team was appointed, Norfolk Southern has been focused on implementing a strategic plan to streamline operations, reduce expenses and maintain superior customer service levels.
The Norfolk Southern team has made significant progress and is on track to achieve annual productivity savings of more than $650 million and an operating ratio below 65 percent by 2020. We are confident the continued execution of our plan will deliver superior value to all of the company's stakeholders by best positioning Norfolk Southern to succeed.