CN and Union Pacific reached a settlement agreement Wednesday that aims to preserve customer options and resolve terminal railroad ownership issues. Under the proposed agreement, CN would drop its opposition to Union Pacific's $71.5 billion merger with Norfolk Southern.

In exchange, the Montreal railroad gains rights to run its trains on tracks between Tuscola and East St. Louis, Ill., as well as rights to serve customers between St. Louis and Kansas City, Mo. CN would also get access to certain shipper facilities where railroad options would be reduced as a result of the merger.

Additionally, CN would acquire Norfolk Southern's ownership interests in the Kansas City Terminal Railway Company and the Terminal Railroad Association of St. Louis. The companies said the settlement ensures continued competitive access for shippers throughout the Midwest rail network.