First Read: U.S. Railroads "Accepted but Delayed: STB Decision Highlight..."

Research evidence excerpt

First Read: U.S. Railroads "Accepted but Delayed: STB Decision Highlight..."

Global Research

28 May 2026ab

First Read

EquitiesU.S. Railroads

Accepted but Delayed: STB Decision Highlights Americas

Complexity of the Merger Review Railroads

Thomas Wadewitz

Analyst

thomas.wadewitz@ubs.com

UP/ NS application accepted but process on hold pending further information +1-212-713 6116

On Thursday morning the US Surface Transportation Board issued a decision accepting Michael Triano

the revised UP/NS merger application but also putting the review process on hold until Analyst

July 27 pending a list of requested supplemental information from UP/NS. Essentially this michael.triano@ubs.com

decision delays the process by two months and it points to areas of concern / focus for +1-212-713 3822

STB. The Board indicated they will provide a procedural schedule in a future filing. We Michael DiMattia

view the delay and request for more information as an indication of the scale and Analyst

complexity of the merger and frictions UP / NS are likely to experience as part of the michael.dimattia@ubs.com

merger review process. +1-617-748 5628

Enhanced competition appears most notable area of further inquiry

STB identified nine areas where they require supplemental information. We believe the

area of enhanced competition (pg. 19 of the STB decision) is the most important topic

because it has been an area of pushback from other railroads and other constituencies

(shipper groups, etc) and it is an area where STB could ask for concessions that would

affect the net synergies UP/NS could realize from the deal. STB identified the UP/

NS Competitive Gateway Pricing (CGP) as the sole competitive enhancement within the

merger proposal and they requested information about the exclusions to the use of CGP