WASHINGTON — The Surface Transportation Board today accepted Canadian National’s application to acquire short line Iowa Northern Railway, said the $230 million deal qualifies as a minor transaction, and set a schedule for a review of the merger.
The STB must approve minor transactions unless it finds a merger would harm competition. CN says acquisition of the 218-mile Iowa Northern will boost rail competition, divert freight off the highway, and give Iowa shippers broader access to single-line service.
Parties interested in participating in the proceeding must notify the STB by March 15. All comments, protests, and requests for conditions must be received by April 1. Responses to comments are due by May 1.
The board’s final decision will be issued by July 26, with an effective date of Aug. 25 or 30 days after approval of the merger.
The National Feed and Grain Association, which represents agricultural shippers, this week asked the board to consider the merger a significant transaction, which would require a more detailed review.
“The NGFA’s general position on railroad transactions … in today’s consolidated railroad industry has been that the Board should err on the side of closely scrutinizing any such transaction for its potential impacts on competition, service, and agricultural markets,” the trade group said.
The board’s decision is available here.
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