Shearman & Sterling and Sidley Austin have scored roles on the $1.48bn (£740m) tie-up between American railroad groups Canadian Pacific and Dakota Minnesota & Eastern Railroad (DM&E).

The deal sees Sidley take the lead for Canadian Pacific, which has agreed to acquire DM&E from shareholders, including UK buy-out houses Electra Private Equity and Candover Investments. The transaction consists of an initial $1.48bn cash payment at closing and future contingent payments of up to £1bn (£500m).