Canadian National Railway (CNI) signed a binding agreement with Union Pacific (UP) to expand its U.S. Midwest access. CN will drop its opposition to the proposed $71.5 billion merger between Union Pacific and Norfolk Southern.
The deal remains contingent on Surface Transportation Board approval of the merger. CN gains new operating rights on tracks between points in Illinois and Missouri.
The company will acquire Norfolk Southern’s ownership stakes in terminal railroads in Kansas City and St. Louis. This establishes a new footprint for CN in the Kansas City market. The move aims to preserve competitive rail options for regional customers following the UP-NS merger.