Dec 19 (Reuters) – Union Pacific and Norfolk Southern on Friday filed an application with the U.S. transport regulator to review their $85 billion proposed merger, which would create the nation’s first coast-to-coast freight railroad. The merger, announced in July, is set to face intense scrutiny from the Surface Transportation Board and the process could […]
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Union Pacific, Norfolk submit papers for regulatory review of $85 billion merger
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Dec 19 (Reuters) – Union Pacific and Norfolk Southern on Friday filed an application with the U.S. transport regulator to review their $85 billion proposed merger, which would create the nation’s first coast-to-coast freight railroad.
The merger, announced in July, is set to face intense scrutiny from the Surface Transportation Board and the process could take about 12 to 18 months.
The companies are targeting an early-2027 close.
The board, created in 1996, rarely rejects mergers outright. However, in 2021 it rejected Canadian National’s plan to place Kansas City Southern in a temporary “voting trust” that would have allowed Kansas City Southern shareholders to receive the deal’s consideration without having to wait for full regulatory approval.
The proposed merger, which allows for faster shipping by cutting handoffs and delays, has faced criticism from unions, lawmakers, and rival railroads since its announcement.
The two companies received shareholder approval in November.
(Reporting by Anshuman Tripathy and Apratim Sarkar in Bengaluru; Editing by Sriraj Kalluvila)