CN sees transport board reject UP-NS merger

Executive Summary

• Canadian National Railway Company (CN) issued a statement welcoming the Surface Transportation Board's (STB) rejection of the Union Pacific (UP) and Norfolk Southern (NS) merger application due to it being incomplete.
• CN argues that UP and NS failed to provide necessary information, specifically regarding anticipated competitive harms, which prevents the STB from properly assessing the transaction's impact on the public interest.
• CN expressed support for the STB's decision, emphasizing that a merger of this scale requires a full and transparent record under heightened regulatory standards.

Key Details

• Regulatory Action: The Surface Transportation Board (STB) rejected the UP-NS merger application as incomplete.
• Reason for Rejection: The STB found that UP and NS failed to meet basic requirements by omitting critical information in their initial filing, specifically information needed to understand their perspective on anticipated competitive harms.
• CN's Position: CN stated the application was "missing the last mile" and that the merger cannot be assessed on omissions or partial disclosure.
• Future Process: CN looks forward to participating robustly once UP and NS submit a complete application and encourages customers to file notices of intent to participate in the STB's process.
• Regulatory Context: The decision reinforces the need for a full record under new merger rules to determine if the transaction is in the public interest and if limited measures can enhance competition.

Notable Quotes

• "Today, the Surface Transportation Board rightly rejected the UP-NS merger application as incomplete. UP and NS failed to meet the basic requirements when it came to providing all the necessary information in their initial filing. Simply put, this application is missing the last mile."
• "This decision reinforces that a merger of this scale cannot be assessed on omissions or partial disclosure, and must be evaluated on a full and transparent record, as required by the heightened standards under the new merger rules."
• "CN appreciates the hard work of the Surface Transportation Board members and their staff for their thorough and fair review of the application compared to the regulatory requirements."