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Union Pacific and Norfolk submit documents for regulatory review of $85 Billion Merger

Union Pacific and Norfolk Southern filed a?application on Friday with the 'U.S. Transport regulator to review $85 billion merger proposal. This would create the first coast-tocoast freight railroad in the U.S.

The Surface Transportation Board will be closely scrutinizing the merger announced in July. This could take up to 12-18 months.

The companies aim to close by early 2027.

The board was created in 1996 and rarely rejects mergers outright. In 2021, however, it rejected Canadian National’s plan to put Kansas City Southern into a temporary “voting trust” that would have allowed Kansas City Southern shareholders the opportunity to receive consideration for the deal without having to wait until full regulatory approval.

Since its announcement, the 'proposed merger', which would allow for faster shipping through reducing handoffs and delays, has been criticized by unions, legislators, and rival railways.

In November, the two companies were approved by shareholders.

(source: Reuters)