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Union Pacific, Norfolk Southern Boost Merger Bid

Wall Street Journal US Business •
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Union Pacific and Norfolk Southern are intensifying efforts to secure approval for their $71.5 billion merger by offering new concessions to regulators. The freight railroad companies submitted supplemental information to the Surface Transportation Board (STB) detailing commitments aimed at ensuring faster, more reliable service post-merger.

Key among these new promises is the expansion of "gateway pricing," offering fixed pricing agreements for twice the number of eligible shipments. They also committed to granting access to other railroads at specific locations where options might be reduced due to the merger. Furthermore, customers would gain the ability to temporarily use alternative rail service if their service deteriorates during the integration phase, and a new rate relief process will be available if merger benefits are not realized promptly.

These commitments were provided in response to the STB's request for more information in May, as the regulator evaluates the revised merger application. The deal has faced opposition from some customers and rivals concerned about potential increases in freight prices and reduced competition.