STB rejects “incomplete” UP-NS merger application

Union Pacific and Norfolk Southern have more homework to do after federal regulators late Friday gave their 7,000-page merger application an incomplete instead of a passing grade.

The Surface Transportation Board in a 15-page decision (PDF) rejected the merger application, and two related applications, as incomplete. UP (NYSE: UNP) and NS (NYSE: NSC) can file a revised application, subject to the same 30-day completeness review, but must notify the board of their refiling plans by Feb. 17.

The rejection caps a tumultuous period since the partners filed the application Dec. 19, during which rival carriers and shippers used their own filings to show why the application fell short, and reiterate their opposition to consolidation of the industry.

UP and NS kept up their own campaign, insisting that a merger would modernize the national rail network, help grow rail freight, and spur industrial development.

FreightWaves has reached out to the railroads for comment.

Subscribe to FreightWaves’ Rail e-newsletter and get the latest insights on rail freight right in your inbox.

Find more articles by Stuart Chirls here.

Related coverage:

Union Pacific CEO tells customers they will benefit from merger

New year, new gains for U.S. rail freight

Rail key as Canada port completes $178M modernization

Retail optimism boosting trans-Pacific container rates

The post STB rejects “incomplete” UP-NS merger application appeared first on FreightWaves.