Canadian Pacific continues pursuit of merger with Norfolk Southern

Canadian Pacific Railway is still pursuing a merger with Norfolk Southern Corp., despite Norfolk Southern’s rejection of the offer in late 2015.

In response to the second takeover attempt, House Judiciary Chairman Bob Goodlatte wrote to the Surface Transportation Board (STB) about the board’s actions per the potential merger. STB informed  Goodlatte there is no specific merger for STB to decide to approve or disapprove, but once a specific merger proposal exists, STB would take a look at whether or not approving it would be beneficial to the railroad system as a whole.

A merger of the two companies could cause a reduction in competition that would cause higher rates and reduced access to service. The soybean industry is concerned because a merger of two of only seven major railroads could also lead to additional mergers.