Canadian National Railway (TSX: CNR) has said the proposed Union Pacific (NYSE: UNP) and Norfolk Southern (NYSE: NSC) merger application filed with the Surface Transportation Board “fails to demonstrate that the merger would enhance competition or generate significant public benefits” sufficient to justify approval, arguing the submission “falls well below both the 2001 and old merger rules” used by the regulator.
In a statement, the railway framed the filing as a direct competition risk, stating that “protecting competition is not optional” because weaker competition raises costs and undermines economic performance.
CN’s central numerical claim is market concentration: it said the transaction would create “a single entity that controls more than 40% of the US freight rail market,” while simultaneously “reduc[ing] rail transportation options for customers.”
“Without real railroad competition, prices go up and consumers lose,” CN asserted.
CN said it will “actively participate in the STB process” and urged all stakeholders to participate to ensure all voices are heard and that competition is enhanced.
A rail labor bloc also escalated opposition as the STB process began. The Brotherhood of Railroad Signalmen, representing about 3,000 members across both companies, opposed the proposed $85 billion acquisition, warning it could “undermine safety” and “impact the workforce.”
BRS President Mike Baldwin cast the transaction as corporate consolidation rather than network improvement, saying the merger is “about expanding corporate power” and “shifts the risk onto workers, communities, and the public.”
“The rail industry has been down this road before, and the results were disruptive, dangerous, and costly,” he added.
BRS said it will continue engaging regulators and submit formal comments to the STB, which is now reviewing a nearly 7,000-page merger application filed last week by the two operators.
Union Pacific told Reuters in an emailed statement: “Every employee with a union job at the time of the merger will continue to have one.”
Information for this story was found via Reuters and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
