A Shipper's View on Rail M&A

Research evidence excerpt

A Shipper's View on Rail M&A

Equity Research

Industry Update — May 12, 2026

Rail

Takeaways from Transportation Legal Expert Call

Our Call Christian Wetherbee

Following Union Pacific's revised application, we hosted a Thompson Hine partner to Equity Analyst | Wells Fargo Securities, LLC

Christian.Wetherbee@wellsfargo.com | 212-214-8053

better understand shippers' perspective on the proposed deal. The application is viewed

Robert H. Salmon, CFAas likely to be accepted with a path to merger approval.

Equity Analyst | Wells Fargo Securities, LLC

Robert.H.Salmon@wellsfargo.com | 212-214-5016

Application Likely Accepted - Jason Tutrone, who represents large rail shipper groups, Ryan Deveikis

sees a high probability (80% odds) that the revised Union Pacific-Norfolk Southern Associate Equity Analyst | Wells Fargo Securities, LLC

merger application will be accepted. While stakeholders/competitors may debate the Ryan.Deveikis@wellsfargo.com | 212-214-8040

merits around enhancing competition or meeting the public interest, UP addressed Matthew Hortopan

the key regulatory requirements as well as the specific application deficiencies the STB Associate Equity Analyst | Wells Fargo Securities, LLC

highlighted in January, which is the primary consideration at this stage. Matthew.F.Hortopan@wellsfargo.com | 212-214-5009

Merger Timeline Debate? - An STB decision on the application completeness is expected Please reach out to your WF Sales

in late May, and if accepted, should include a more defined statutory review timeline, an Representative to access a replay of our call

area that remains somewhat debated. While Union Pacific continues to target a 1H27

close, Mr. Tutrone pointed to the STB's published timeline, which would suggest potential