Dec 19 (Reuters) - Union Pacific and Norfolk Southern on Friday filed an application with the U.S. transport regulator to review their $85 billion proposed merger, which would create the nation's first coast-to-coast freight railroad.
The merger, announced in July, is set to face intense scrutiny from the Surface Transportation Board and the process could take about 12 to 18 months.
The companies on Friday reiterated that they are targeting an early-2027 close.
The proposed merger, which allows for
faster shipping by cutting handoffs and delays, has faced criticism from unions, lawmakers, and rival railroads since its announcement.
"As time and technology continue to transform how freight is delivered, our industry must keep pace and move forward, reaching underserved markets with new rail solutions and strengthening the U.S. supply chain," Union Pacific CEO Jim Vena said in a statement on Friday.
Union Pacific dominates freight rail operations in the Western United States, while Norfolk Southern is a leading carrier in the East. Together, they form two of the four major U.S. Class I railroads, alongside BNSF Railway and CSX Corp.
President Donald Trump, who in September said the merger "sounds good to me" after he met with Vena, had in August fired STB member Robert Primus.
The board, created in 1996, rarely rejects mergers outright. However, in 2021 it rejected Canadian National's plan to place Kansas City Southern in a temporary "voting trust" that would have allowed Kansas City Southern shareholders to receive the deal's consideration without having to wait for full regulatory approval.
The Attorney General also has authority to weigh in on large railroad mergers, giving the Justice Department a potential say in the merger.
(Reporting by Anshuman Tripathy and Apratim Sarkar in Bengaluru; Editing by Sriraj Kalluvila)
