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House Panel Calls for Strict Review of $72B UP-SP Merger

A bipartisan House Appropriations Committee has directed the Surface Transportation Board to conduct rigorous scrutiny of Union Pacific's proposed $72 billion acquisition of Southern Pacific, which would establish the first all-freight transcontinental railroad. The committee's language in the fiscal 2027 transportation appropriations bill emphasizes that the merger must demonstrate enhanced shipper options rather than merely sustaining existing competition levels. The STB conditionally accepted the application in late May and has requested additional information from Union Pacific by July 27 before commencing formal review. The STB's 2001 evaluation standards set a high bar for regulatory approval.