{"id":968471,"date":"2026-05-28T18:04:21","date_gmt":"2026-05-28T22:04:21","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/cn-says-stb-was-right-to-freeze-the-up-ns-merger-and-demand-more-information\/"},"modified":"2026-05-28T18:04:21","modified_gmt":"2026-05-28T22:04:21","slug":"cn-says-stb-was-right-to-freeze-the-up-ns-merger-and-demand-more-information","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/cn-says-stb-was-right-to-freeze-the-up-ns-merger-and-demand-more-information\/","title":{"rendered":"CN Says STB Was Right to Freeze the UP-NS Merger and Demand More Information"},"content":{"rendered":"

\nApplicants Still Fail to Meet Heightened Standard for Enhanced Competition and Public Interest
\n<\/h2>\n
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MONTREAL, May 28, 2026 (GLOBE NEWSWIRE) — CN (TSX: CNR) (NYSE: CNI) commends the Surface Transportation Board\u2019s (STB) for its decision to freeze the merger review and order Union Pacific (UP) and Norfolk Southern (NS) to provide substantial additional information. This confirms what CN and many stakeholders have said all along: UP and NS still have not submitted a credible case to support their proposed merger. As the Board cautions, the Applicants\u2019 \u201csupplemental filing\u201d in July must present a \u201cprima facie case,\u201d which means a case that meets the public interest standard at first glance. That burden belongs to UP and NS alone. It is not the job of public officials and stakeholders to fill the gaps in the Applicants\u2019 case. The process should not move forward before Applicants\u2019 \u201cprima facie\u201d showing has been made.<\/p>\n

The Board gave a clear roadmap earlier this year, but UP and NS continue to leave major gaps\u2014which the STB finds \u201cconcerning in their frequency and magnitude\u201d\u2014in their amended application, including unresolved competitive harms, inadequate market share analyses, and the absence of meaningful measures that would enhance competition as required under the STB\u2019s heightened merger rules. The STB agrees with CN that the amended application \u201clacks clarity and detail\u201d and does not afford parties a meaningful opportunity to comment on the merits of the merger.<\/p>\n

The STB\u2019s latest action reinforces that the Applicants have still failed to provide the information necessary for regulators, shippers, labor groups, and other stakeholders to fully assess the competitive and operational impacts of the proposed merger. The Applicants have not done their homework, and they cannot expect anyone else to bail them out.<\/p>\n

The STB\u2019s request for additional information underscores that the Applicants have failed to meet the rigorous standards required for a merger that would reshape the American rail network and concentrate control over approximately 40% of U.S. freight rail traffic in one railroad. Indeed, the STB warned that the \u201creal-world consequences\u201d of a merger like this \u201ccannot be ignored, assumed away, or overlooked based on vague intentions or promises.\u201d<\/p>\n

\u201cThe Board already told the Applicants what was missing. Instead of fixing the gaps in their case, UP and NS largely recycled the same deficient arguments and inadequate analyses. CN from the beginning has emphasized that the heightened merger rules require applicants to demonstrate real competitive enhancements and clear public benefits. UP and NS have failed to meet that standard. At every stage of this process, the record continues to show an application full of holes, unsupported assumptions, and remedies that fall far short of what is required for a major merger between Class Is. Applicants need to take this process seriously, and so far, they have not done so.\u201d<\/p>\n

\u00a0–\u00a0 \u00a0 Olivier Chouc, Executive Vice-President and Chief Legal Officer, CN<\/p>\n

CN continues to believe the amended application for the proposed merger would reduce competitive rail options for shippers, increase concentration across key freight corridors, and create significant downstream risks for the supply chains.<\/p>\n

The Applicants\u2019 proposed remedies remain narrow, temporary, and insufficient to offset the merger\u2019s competitive harms. As the Board recognized today, their heavily promoted Committed Gateway Pricing program applies to only a tiny fraction of rail traffic and, according to the Applicants\u2019 own evidence, may leave many shippers worse off with higher rail shipping costs.<\/p>\n

CN appreciates the STB\u2019s continued commitment to a thorough and transparent review process and remains confident the Board will hold the Applicants to the full requirements of the law and the public-interest standard. CN looks forward to reviewing the supplemental information that Applicants have been required to provide.<\/p>\n

\n CN Forward-Looking Statements <\/strong>
\n
Certain statements by CN included in this news release constitute \u201cforward-looking statements\u201d within the meaning of the United States Private Securities Litigation Reform Act of 1995 and under Canadian securities laws. By their nature, forward-looking statements involve risks, uncertainties and assumptions. CN cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Forward-looking statements may be identified by the use of terminology such as \u201cbelieves,\u201d \u201cexpects,\u201d \u201canticipates,\u201d \u201cassumes,\u201d \u201coutlook,\u201d \u201cplans,\u201d \u201ctargets,\u201d or other similar words. Forward-looking statements reflect information as of the date on which they are made. CN assumes no obligation to update or revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable securities laws. In the event CN does update any forward-looking statement, no inference should be made that CN will make additional updates with respect to that statement, related matters, or any other forward-looking statement.<\/p>\n

\n About CN<\/strong>
\n
CN powers the economy by safely transporting more than 300 million tons of natural resources, manufactured products, and finished goods throughout North America every year for its customers. With its nearly 20,000-mile rail network and related transportation services, CN connects Canada\u2019s Eastern and Western coasts with the U.S. Midwest and the U.S. Gulf Coast, contributing to sustainable trade and the prosperity of the communities in which it operates since 1919.<\/p>\n\n\n\n\n\n\n\n
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<\/div>\n","protected":false},"excerpt":{"rendered":"

Applicants Still Fail to Meet Heightened Standard for Enhanced Competition and Public Interest MONTREAL, May 28, 2026 (GLOBE NEWSWIRE) — CN (TSX: CNR) (NYSE: CNI) commends the Surface Transportation Board\u2019s (STB) for its decision to freeze the merger review and order Union Pacific (UP) and Norfolk Southern (NS) to provide substantial additional information. This confirms what CN and many stakeholders have said all along: UP and NS still have not submitted a credible case to support their proposed merger. As the Board cautions, the Applicants\u2019 \u201csupplemental filing\u201d in July must present a \u201cprima facie case,\u201d which means a case that meets the public interest standard at first glance. That burden belongs to UP and NS alone. It is not the … <\/p>\n

Continue reading “CN Says STB Was Right to Freeze the UP-NS Merger and Demand More Information”<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-968471","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"\nCN Says STB Was Right to Freeze the UP-NS Merger and Demand More Information - Market Newsdesk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.marketnewsdesk.com\/index.php\/cn-says-stb-was-right-to-freeze-the-up-ns-merger-and-demand-more-information\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CN Says STB Was Right to Freeze the UP-NS Merger and Demand More Information - Market Newsdesk\" \/>\n<meta property=\"og:description\" content=\"Applicants Still Fail to Meet Heightened Standard for Enhanced Competition and Public Interest MONTREAL, May 28, 2026 (GLOBE NEWSWIRE) — CN (TSX: CNR) (NYSE: CNI) commends the Surface Transportation Board\u2019s (STB) for its decision to freeze the merger review and order Union Pacific (UP) and Norfolk Southern (NS) to provide substantial additional information. 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