Major Mergers

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Major Railroad Mergers and Consolidations

The STB has exclusive jurisdiction over railroad mergers. Under revised merger rules adopted in 2001, the STB will not approve a merger application involving Class 1 railroads (major merger) unless the transaction is shown to be in the public interest. STB merger review involves rigorous scrutiny of the proposal and allows for public participation.

As part of any merger review, the merger rules require the railroads to submit a service assurance plan. The merger rules also provide for the STB to impose conditions upon a merger, as appropriate, and oversee the combined carriers' operations for a period of at least 5 years following the merger.

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Key Merger Statutes, Regulations, and Related Materials:

  Federal Statutes
    • 49 U.S.C §§ 11321-11328

  STB railroad merger regulations
    • 49 C.F.R. § 1180

  2001 Decision: Revised Merger Rules
    •STB Docket EP 582 (Sub-No. 1)

  2001 Summary of Merger Rules

Potential Merger between Canadian Pacific Railway and Norfolk Southern Railway

The STB is aware of a recent offer by Canadian Pacific Railway (CP) to merge with Norfolk Southern Railway (NS). A number of stakeholders have submitted correspondence to the STB about this offer, including members of Congress, State and local officials, shippers, and members of the public.

At this time, there is no proceeding before the agency related to a merger of CP and NS.