Trade Groups Oppose Union Pacific-Norfolk Southern Merger

Norfolk Southern and Union Pacific freight locomotives in Burnside, Ky. (Luke Sharrett/Bloomberg)

On July 29, 2025, Union Pacific Corp. announced it had agreed to buy Norfolk Southern Corp. in a deal valued at $85 billion.

More than 60 trade associations and chambers of commerce submitted a letter to the Surface Transportation Board last week opposing Union Pacific Corp.'s proposed acquisition of Norfolk Southern Corp.

Among the groups signing the letter were the West Virginia Manufacturers Association, the Ohio Chemistry Technology Council, the Kentucky Association of Manufacturers and the Rail Passenger Association.

The largest railroad merger in U.S. history was announced less than three months ago, and opposition has begun.

Shareholders of Norfolk Southern Corp. and Union Pacific voted Nov. 28 to approve the agreement that allows UP to buy and absorb NS in a deal valued at $85 billion.

ACD supports NAWE in raising concerns over the proposed UP–NS merger. Intermodal rail keeps supply chains moving—further consolidation risks service, competition, and regional economies. We urge the STB to assess long-term impacts.

Read more: https://t.co/VUwwZ14a7W — Alliance for Chemical Distribution (@ACD_chem) December 2, 2025

One signer was the American Chemistry Council, which had previously said it opposes the acquisition.

“History has shown that increased rail consolidation leads to fewer choices, higher transportation costs, service disruptions, and reduced economic competitiveness. Today, just four Class I railroads control more than 90% of freight rail traffic. The proposed UP/NS transaction would be the largest rail merger in history and would put control of more than 40% of rail traffic in the hands of a single railroad. It would further weaken the small amount of competition that currently exists in the railroad industry,” the letter says.

“Past rail mergers have triggered major breakdowns in the supply chain and increased costs for businesses and consumers alike. Given the potential for widespread economic harm, it is essential that the Surface Transportation Board proceed with great care. The creation of a transcontinental railroad must not come at the expense of competition, service reliability, or the broader health of the U.S. supply chain.”

One Deal Approved

Also last week, the STB approved a smaller-scale acquisition that could affect northern West Virginia.

The STB allowed Fortress Investment Group to acquire control of Wheeling & Lake Erie Railway Co. (W&LE) and Akron Barberton Cluster Railway Co. (ABC). The acquisition will add to Fortress’s existing portfolio of six Class III rail carriers. W&LE, a Class II carrier, operates over approximately 982 miles of track in Ohio, Pennsylvania, West Virginia and Maryland. ABC is a Class III carrier that operates over approximately 84 miles of track in the vicinity of Akron, Ohio.

The W&LE crosses West Virginia’s Northern Panhandle on a route between Steubenville, Ohio, and Pittsburgh.

It also has a line that runs down the Ohio side of the Ohio River in the Northern Panhandle area and crosses the Ohio on a bridge to connect to West Virginia south of Wheeling. It connects with Canadian National Railway at Toledo, and it has several interchange points with Norfolk Southern and other railroads.

In its decision, the STB said the transaction satisfies the applicable statutory criteria and will not result in significant impacts on competition. The board also found that the transaction will enhance W&LE’s and ABC’s access to capital and therefore facilitate strategic investment decisions and growth opportunities.