OMAHA, Neb. — Union Pacific and Norfolk Southern will file their merger application with federal regulators on Friday, the railroads said today.
The document, which will be filed with the Surface Transportation Board, will allow the railroads to show how their combination will deliver economic benefits, enhance competition, and protect union jobs, the railroads said.
It is the first major merger that will be judged under the tougher review rules the STB adopted in 2001 after rapid consolidation in the 1990s left the U.S. with a pair of Class I railroad duoplies, with BNSF Railway and Union Pacific serving the West and CSX and Norfolk Southern blanketing the East.
The twists in the new merger rules: Railroads must show their combination enhances, rather than merely preserves, competition; they must demonstrate that the deal is in the public interest; and address downstream impacts such as the potential for additional Class I mergers.
The UP-NS application will provide full details how the railroads plan to mesh their operations, how much traffic growth they expect, and how the $85 billion deal will affect the rest of the railroad industry.
Once the application is filed, the STB will have 30 days to accept it as complete or reject the application as incomplete.
Executives from both railroads will discuss the merger application with investors and Wall Street analysts during a webcast on Friday morning.
The railroads on July 29 announced their plans to form the first U.S. transcontinental railroad. Shareholders from both companies approved the transaction last month.
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