CN Files Motion to Force Disclosure in UP-NS Merger Review

Executive Summary

• CN filed a motion with the Surface Transportation Board (STB) demanding additional information from Union Pacific and Norfolk Southern regarding their proposed merger.
• The motion alleges that the merger applicants failed to disclose critical market‑share data, methodology for shipper classifications, complete network maps, and competitive enhancement proposals, rendering the application incomplete.
• CN’s action seeks greater transparency and could influence the STB’s assessment of competitive harms associated with the UP‑NS combination.

Key Details

• Motion Filed: CN submitted a formal request to the STB to compel Union Pacific (UP) and Norfolk Southern (NS) to provide missing information under the new merger rules.
• Identified Gaps in Application:
• Incomplete market analyses – no methodology or data for “three 2‑to‑1 shippers” claim; absent full lists of 2‑to‑1 and 3‑to‑2 points.
• Missing projections – lack of market‑share forecasts by revenue and traffic volumes, plus omitted key traffic data.
• Incomplete network map – failure to show certain trackage, haulage rights, and overlapping lines in watershed states; a revised map has since been filed by the applicants.
• No competitive enhancements – applicants offered no remedies to mitigate competition concerns, treating this as a merits‑stage issue rather than a completeness deficiency.
• CN’s Position: Senior Vice‑President and Chief Legal Officer Olivier Chouc emphasized that full disclosure is essential for the STB’s public‑interest and competition analysis and urged the applicants to engage transparently.
• Potential Impact: The motion could delay or alter the regulatory review of the UP‑NS merger, affecting competitive dynamics in North American rail transportation.

Notable Quotes

“Given the scale and stakes of the proposed combination, the applicants must meet the highest standard of transparency and compliance…the information the applicants refuse to disclose is critical to understand their perspective on anticipated competitive harms.” – Olivier Chouc, Senior Vice‑President & Chief Legal Officer, CN