By Kelly Cloonan
Union Pacific and Norfolk Southern filed an application with the Surface Transportation Board requesting approval of their proposed merger.
The application, filed Friday, said the merger would boost competition, streamlining pricing of interline moves for thousands of customer locations. It also would allow the industry to compete more effectively with long-haul trucking, the companies said.
The deal also would move freight more efficiently and preserve all union jobs that exist at the time of the merger, according to the application. The growth of the combined company also is expected to create about 900 net new union jobs by the third year following the merger.
The application includes 2,000 letters of support from stakeholders, the companies said.
The companies' proposed $71.5 billion merger, announced in July, would form a single company controlling coast-to-coast rail shipments for the first time in U.S. history. Regulators have been skeptical of deals that could create a transcontinental rail juggernaut, worrying that they could result in price increases, service disruptions and lower investment in safety improvements.
BNSF Railway, Union Pacific's direct competitor, said it remains opposed to the proposed merger after seeing the application. The company argued the deal poses long-term threats to competition, leaving shippers with fewer options and driving up rates and ultimately higher prices for consumers.
"This didn't begin with customers asking for this merger, and the claimed public benefits appear to accrue primarily to shareholders," BNSF Chief Executive Katie Farmer said.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
12-19-25 1110ET
