Key facts
- The U.S. Surface Transportation Board (STB) has resumed its review of Union Pacific's proposed $85 billion merger with Norfolk Southern.
- The STB stated that the resumption of the review does not signal approval of the deal.
- The merger, if approved, would create the first coast-to-coast freight railroad in the United States.
- The STB has set a timeline for public comments on the proposed merger.
- The STB has requested that the companies refile any filtered or screened workpapers within 10 days.
The U.S. Surface Transportation Board (STB) has resumed its review of Union Pacific's proposed $85 billion merger with Norfolk Southern, a deal that would create the first coast-to-coast freight railroad in the United States. The board stated that the resumption of the review does not signal approval of the merger. The STB determined that supplemental information submitted by the railroads was sufficient to proceed with the review process. The decision also outlines a timeline for public comments and directs the companies to refile any workpapers that had been filtered or screened within 10 days, with unfiltered workpapers due August 28. The board denied a request for an expedited proceeding related to the divestiture of control of the Terminal Railroad Association of St. Louis.
Under the Trump administration's regulatory environment, businesses have been consolidating, including in tightly regulated industries. While the Department of Justice and Federal Trade Commission typically oversee mergers, the STB has the final say over freight rail mergers, considering both competitive effects and public interest. The STB rejected the initial merger application in January, deeming it incomplete, and accepted a revised application in May, but held the proceeding in abeyance until now. A coalition including workers, shippers, rail carriers like BNSF, and 22 Democratic senators has emerged to oppose the merger, citing concerns about anti-competitiveness, rate increases, and job losses, with preliminary analysis projecting over 1,000 layoffs and 500 transfers.