HomeMy WebLinkAbout012026 email - UP-NS Merger Application Rejected as IncompleteALERT: BE CAUTIOUS This email originated outside the organization. Do not open attachments or click on links if you are not expecting them.
In a major development late last week on the proposed merger between Union Pacific and Norfolk Southern, the Surface Transportation Board (STB) voted unanimously to reject the merger
application as filed.
The STB deemed the application incomplete on multiple material grounds. It determined the application failed to include full details of the merger agreement and projected market shares.
Estimates of future market share are required because any railroad merger, including an end-to-end combination, “entails a risk that the merged carrier would acquire and exploit increased
market power.” Complying with the STB’s requirements is especially important given the significant implications for the health, competitiveness, and long-term resilience of the nation’s
supply chain from a potential merger of this size.
The STB rightly pointed out that greater scrutiny is necessary for a merger of this unprecedented size and impact to the nation’s rail network. The proposed UP-NS transaction is three
times larger than the biggest merger in our industry’s history and would be the largest U.S. merger of any kind since 2019.
This does not mean the merger risk is over. For next steps, the UP and NS will likely refile a revised merger application and must notify the STB by February 17 if they intend to do
so. Any new filing will initiate a second completeness review by the STB, and a procedural schedule will be set after that review concludes.
BNSF remains steadfast in our belief that competition drives innovation, service quality and continued investment. When competition diminishes, rail customers lose options and accountability
suffers.
Others continue to add their concerns. During its 107th convention last week, the American Farm Bureau Federation passed a resolution opposing the UP-NS merger <https://link.quorumtracking.com/f/a/_8
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Thank you for your continued interest in protecting a competitive rail network. Additional information and analysis on the proposed UP-NS merger are available on our website <https://link.quorumtrack
ing.com/f/a/jtT6eH5_3KNvGIsIBaSj7Q~~/AACYXxA~/hlp9VhSTxS3J-9_dkdeXG2iMtzsrvhHNemUMMmQWWfI3zHgTEmeqp5DidjhJ5IwAZwgT8u3swFZPlffS3sD98SUx2K7y2WWKahtZ0wkVZGjZa6EMbnjvRTxWyJCjGziuBmh1b4hnc-xgVmSEAySGHg~~>
. We will continue to keep you updated as new developments occur.
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