STB conditionally accepts UP-NS rail merger application, wants more data

Federal regulators on Thursday accepted the merger application submitted by Union Pacific and Norfolk Southern, on the condition that the railroads submit more information for review by July 27.

That information ranges across nine areas of concern, including environmental issues. The formal evaluation of the deal won’t begin until that material is accepted.

Shares of the companies were down about 5% on the news.

The STB’s 42-page decision (PDF) comes after UP (NYSE: UNP) and NS (NYSE: NSC) in April filed a revised application following the agency’s rejection of the initial paperwork in January.
“We are confident this merger will deliver more reliable and lower-cost transportation options for American businesses,” said Union Pacific Chief Executive Jim Vena, in a statement. “We submitted a comprehensive, data-driven application backed by a detailed plan for seamless integration. We look forward to the opportunity to show the facts and demonstrate the benefits for our customers, employees and America.”