The Merger Rambles On
CN collects on its support, STB throws a bone to Labor, and the changing merger approval path in DC.
CN Cashes in its Chips
As the UP-NS proposed merger rumbles on into year 2, there have been several news items worth noting recently.
Just last week, CN announced two agreements with UP after some horse trading. The first is an MOU to “Improve North American Rail Connectivity” while the second includes conditions dependent on the proposed merger’s approval. In exchange, CN will “not oppose” the merger and “both parties will collaborate through the STB process to ensure that [the] agreement takes effect.”
“Union Pacific struck a deal with Canadian National to secure that rival’s support for its proposed $85 billion acquisition of Norfolk Southern railroad…
“UP CEO Jim Vena said he believes these agreements with Canadian National will address many of the competitive concerns with the merger because CN will gain permission to be able to serve any customers that will see significantly reduced shipping options after the merger. And CN will take over Norfolk Southern’s ownership of smaller railroads in St. Louis and Kansas City to ensure the merged railroad will never control the majority of those operations…
