The US industry organization is demanding regulatory intervention in the joint venture Pacific acquisition of Norfolk Southern.

date
04/08/2025
According to reports, the American Freight Rail Customers Association is seeking regulatory authorities to set stringent conditions or prevent the merger of Union Pacific and Norfolk Southern, which is worth $85 billion. The report indicates that 7 shipping organizations have expressed concerns about the significant increase in power of the merged companies to increase prices or reduce service levels. Union Pacific stated that it has negotiated with over a hundred customers on low-cost rail options and will provide details to stakeholders in the documents submitted to the Surface Transportation Board of the United States. The estimated valuation of the merged enterprise is $250 billion, making it the first freight railway operator in the United States to cover both the east and west coasts, releasing approximately $2.75 billion in synergies annually. The union representing the employees involved has previously expressed opposition to the merger and plans to oppose it face to face during the discussions at the Surface Transportation Board of the United States.