Norfolk Southern Merger Faces Extended Review as Regulators Reopen Filings

The Surface Transportation Board reopened public participation in Union Pacific's proposed acquisition of Norfolk Southern Corporation, establishing fresh regulatory deadlines for the ongoing review. According to a BNSF customer notice published November 10, parties that missed the original September 30 cut-off can now submit a notice of intent and comments through November 18 without requiring special permission. Participants that already filed can submit further statements without submitting new notices.

The regulatory agency's move follows scrutiny over remarks made by Union Pacific Chief Executive Jim Vena during a March 17 conference. Railway Age reported that the regulator turned down an appeal by Union Pacific to keep the keynote recording confidential, ordering it to be released publicly. The board stated that comments regarding potential measures against shippers could discourage open participation. It emphasized that proven retaliation or threats would influence the course of the merger review and how public-interest arguments are judged.

A parallel challenge emerged from Canadian Pacific Kansas City, which filed a motion on October 30 seeking to dismiss the revised merger application on grounds that the statements undermined the process. The regulator directed Norfolk Southern and Union Pacific to provide their responses to the dismissal request by November 19, deferring its decision to a later date. Additionally, Union Pacific must supply responsive documents and verified statements by December 4, while the full transaction review is slated to run into 2027.

In European trading, Norfolk Southern shares changed hands at 302.10 euros on Lang & Schwarz at 16:32 CET on Thursday, November 12, rising 1.55 percent above the previous session's Xetra close of 297.50 euros. Earlier the same day at 14:08 CET, the stock was quoted at 298.65 euros. In recent US trading, the shares closed down 2.83 percent at USD 319.94 on volume of 1.28M shares, representing a market capitalization of USD 71.86B.

The regulatory developments follow Norfolk Southern's third-quarter results reported in late October, which included adjusted earnings per share of $3.62 alongside an adjusted operating ratio of 65.4 percent. The quarter saw 3 percent volume gains across each segment, but also absorbed $42 million in merger-related expenses and $28 million in net costs connected to the Eastern Ohio incident.