(NAFB) – Canadian Pacific Railway Limited has agreed to buy Kansas City Southern for $25 Billion, and create a 20,000-mile network that would link the U.S., Mexico and Canada through a single rail line. If the deal is approved by the U.S. Surface and Transportation Board, the combined company will be headquartered in Calgary operating under the name Canadian Pacific Kansas City.

The deal would create a rail network extending across Canada from Vancouver to New Brunswick, and through the U.S. Midwestern network to Gulf of Mexico ports and deep into Mexico down to Mexico City.

A joint company statement said that the two rail companies decided the timing of the deal was right in light of the new three-way USMCA trade deal that replaced the old NAFTA pact.

Howard Greene, a former journalist, railway analyst, and author of the book ‘Railroader’ believes the deal has a good chance of being approved by government regulators.

The transaction would be the biggest Canadian purchase of a U.S. asset since Enbridge finalized its deal for Spectra Energy in early 2017.

A North America-wide rail line network headquartered in Calgary would be good news for Alberta’s hard-hit oil industry. But the joint company statement highlighted the environmental points of the deal, saying the new single-line routes will cut emissions, as rail is four times more fuel efficient than trucking.

Canadian Pacific will file the merger application with the U.S. Surface and Transportation Board, and begin the process of creating a trust that will hold Kansas City Southern’s shares while approval is pending.