breaking

Canadian National Drops Opposition to UP-NS Merger, Secures Market Access Deal

Canadian National has agreed to support Union Pacific's acquisition of Norfolk Southern, ending potential regulatory opposition to the proposed combination. Under the settlement, CN will gain enhanced access to shipper locations across the U.S. Midwest and Mexican markets. These locations would otherwise face reduced Class I railroad competition if the merger proceeds. The agreement requires Surface Transportation Board approval. BNSF has criticized the arrangement, arguing that UP's willingness to negotiate competitive concessions with CN undermines the fundamental rationale for consolidating the two carriers. The deal removes a significant obstacle to the transaction, which has faced scrutiny from regulators and shippers concerned about service disruptions and market concentration among major carriers.