The head of the nation's major railway is thinking about business deals in the wake of the corporation's profit goals for the next three years. The CEO of Canada's CN Rail is thinking big when it comes to mergers and acquisitions -- particularly acquisitions -- as CN has upped its profit goals from its original 10% per share growth goal. CN purchased the shares of a trucking company this past March as the first step in its new plan.
In addressing investors recently, the company chief said CN plans on playing offensively in business in the next three years, getting more involved in the mergers and acquisitions realm and centering on what he called organic growth. CN tried to pick up eastern Canada's largest container in May but fell short to a company out of Singapore. But CN hooked up with a Hong Kong outfit to open a container business elsewhere in Canada.
CN is setting its sights on developing additional container companies across the nation since the CEO said eastern manufacturing growth has all but petered out. The rail company is also focusing on new wave technology to increase its portfolio. Those technologies are expected to save the company between $200-$400 million in the next two years.
Mergers and acquisitions are ways for businesses to increase their profit margins. These deals are usually complex and would do well with the help of an experienced legal team. A lawyer can ensure these deals adhere to the letter of the law and any contracts are in the best interests of the client.