CPKC, CN vs. UP-NS Merger: Rail Industry Opposition & STB Review

Introduction

Canadian Pacific Kansas City (CPKC) and CN have expressed opposition to Union Pacific Railroad’s (UP) proposed acquisition of Norfolk Southern Railway, joining BNSF Railway in opposing the $85 billion merger deal. The Surface Transportation Board (STB) must approve the proposed merger.

Opposition to the Merger

CPKC and CN have recently voiced their concerns regarding Union Pacific Railroad’s proposed acquisition of Norfolk Southern Railway. The proposed merger deal, valued at $85 billion, requires approval from the Surface Transportation Board (STB).

Concerns Raised by CPKC

CPKC stated that the megamerger is not in the public’s interests. The company believes the merger is unnecessary and would limit shippers’ options, permanently altering the freight-rail transportation market. CPKC’s opposition to the UP-NS deal comes despite completing its acquisition of Kansas City Southern Railway in 2023.

Timeline of the Proposed Deal

UP and NS are reportedly planning to file their application with the STB sometime this fall.

Conclusion

Canadian Pacific Kansas City and CN have joined BNSF Railway in opposing Union Pacific Railroad’s proposed acquisition of Norfolk Southern Railway, a merger valued at $85 billion that requires Surface Transportation Board approval.

Company Summary

BNSF Railway: A Class I railroad.

Canadian Pacific Kansas City (CPKC): Completed its acquisition of Kansas City Southern Railway in 2023.

CN: Has voiced concerns regarding Union Pacific Railroad’s proposed acquisition of Norfolk Southern Railway.

Union Pacific Railroad (UP): Proposes to acquire Norfolk Southern Railway.

Norfolk Southern Railway (NS): The subject of a proposed acquisition by Union Pacific Railroad.