Union Pacific Norfolk Southern merger faces new CN filing

Union Pacific Norfolk Southern merger is facing another hurdle after Canadian National Railway said on Monday it asked the U.S. Surface Transportation Board to require more disclosure on the proposed deal, as reported by Reuters.

Union Pacific and Norfolk Southern submitted a merger application to the board in December that runs close to 7,000 pages. That filing set in motion a regulatory review of what could be one of the rail industry’s biggest transactions in decades; more on the process is available from the Surface Transportation Board.

The proposed combination was announced in July and values the deal at $85 billion (C$117.9 billion). The companies say the tie-up is meant to speed shipments by reducing handoffs and delays, creating the first U.S. coast-to-coast railroad. The proposal has drawn criticism from labor unions and rival railroads.

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Canadian National Railway motion to Surface Transportation Board

CN said the applicants did not fully lay out their assessment of the merger’s competitive impact. It pointed to incomplete market analyses, missing required market-share projections, and other gaps it believes should be addressed, as noted by Railway Supply.

“Given the scale and stakes of the proposed combination, the applicants must meet the highest standard of transparency and compliance,” Canadian National said. It added that, rather than arguing there is “nothing to see here,” the applicants should focus on meeting the stricter expectations set by the new merger rules.

Union Pacific and Norfolk Southern did not immediately respond to a request for comment.

Surface Transportation Board merger review timeline

The Surface Transportation Board review is expected to be closely scrutinized and could take 12 to 18 months. The companies have said they are targeting an early-2027 close.

“While the application outlines compelling earnings and free cash flow under favorable outcomes, regulatory uncertainty is elevated,” BMO Capital Markets analyst Fadi Chamoun wrote in a note last week.

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