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Surface Transportation Board Rejects Shipper Push to Block UP-NS Merger

The Surface Transportation Board has declined requests from chemical and fertilizer shippers to dismiss the proposed merger between Union Pacific and Norfolk Southern, clearing a path for the combination to advance toward regulatory review. Trade associations representing major shippers had argued the deal would reduce competitive options in the marketplace and harm their ability to secure favorable freight rates. The board's decision allows the merger application to proceed through the formal examination process. Chemical manufacturers and fertilizer producers expressed particular concern about consolidation in a sector where rail represents a critical transportation option. The ruling represents a significant milestone for the two carriers, though additional regulatory hurdles remain before the combination can close. Shippers vowed to continue advocating against the deal during the board's ongoing review.