MONTREAL: Canadian National Railway Co (CN) said chief executive officer Jean-Jacques Ruest plans to retire by the end of January, handing an apparent victory to a major shareholder that had been pressuring him to step down.

       Montreal-based CN, Canada’s largest railway, said Ruest will also leave the board next year. A search has started for his replacement, the company said.

       The news comes amid an activist campaign by TCI Fund Management Ltd, CN’s second largest holder. TCI has nominated four directors to the board and has lobbied for Ruest to be replaced with industry veteran Jim Vena.

       The firm, which is run by billionaire Chris Hohn, says the railway has underperformed under Ruest and needs to focus on improving its operations now that rival Canadian Pacific Railway Ltd has become a stronger competitor after agreeing to buy Kansas City Southern earlier this year.

       “I would like to thank JJ for his dedicated service to CN over 25 years and as CEO since 2018.

       He has provided the company and all of our stakeholders with strong and inspired leadership,” said Robert Pace, CN’s chairman, in a statement.

       Pace said Ruest had deferred discussions on his retirement plans in order to see the company through the potential merger with Kansas City Southern and the introduction of its new strategic plan in September.

       The merger failed when US regulators blocked a key provision.

       A representative for TCI wasn’t immediately available for comment. — Bloomberg