CN’s concerns remain over Union Pacific–Norfolk Southern merger application

Canadian National Railway says it is continuing to review the amended merger application filed by Union Pacific and Norfolk Southern with the Surface Transportation Board, warning the proposal still fails to address key competitive concerns.

The railway said that while some deficiencies have been addressed, the applicants have not made meaningful improvements to mitigate what it describes as significant competitive harms or to provide adequate competitive enhancements under the regulator’s rules.

CN also disputed the characterization of the proposed merger as “end-to-end,” arguing that competitive overlaps between the two U.S. railways are more extensive than outlined in the application.

“Given the magnitude of this transaction, the Board’s authority to impose conditions that protect competition and the public interest must be paramount,” said Olivier Chouc, senior vice-president and chief legal officer, CN. “If Union Pacific and Norfolk Southern have set a cost cap on the conditions, they’re willing to accept, that’s their business decision and their risk. It is not a ceiling on the Board’s authority, and it doesn’t limit what’s required in the public interest.”

The Montreal-based railway said remedies proposed in the application are insufficient for a transaction that would control roughly 40 per cent of U.S. freight rail traffic.

CN added that it will remain actively engaged in the regulatory review process, emphasizing that the board’s mandate to impose conditions to protect competition and the public interest is not negotiable.