In a major breakthrough for the largest railroad consolidation in modern history, yesterday Union Pacific struck a deal with Canadian National to secure its rival’s support for the proposed $85 billion acquisition of Norfolk Southern. The agreement could significantly clear the track for a merger that aims to create the nation’s first transcontinental railroad. The proposed $85 billion merger has deeply divided the freight industry. If approved, the deal would concentrate immense market power into a single corporation, controlling more than 40% of all U.S. rail traffic. It would also reduce the number of major American freight railroads to just five. The U.S. Surface Transportation Board is in the early stages of reviewing the massive acquisition. Regulators have paused forward momentum, demanding additional, detailed information from the involved railroads by the end of the month.
