Union Pacific and Canadian railway company Canadian National, CN for short, signed a binding framework agreement on July 22, 2026. With this, CN withdraws its previous opposition to the planned acquisition of Norfolk Southern by Union Pacific.
As recently as April, CN had harshly criticized the revised merger application. The company cited significant competition concerns and demanded more comprehensive protective measures for shippers and competing railway companies. Now Union Pacific and CN have agreed on such concessions.
CN is to receive access to customer locations where the number of major railway operators would be reduced from two to one or from three to two through the merger. However, this access only applies if it is commercially and operationally feasible.
Additionally, CN is to assume Norfolk Southern's stakes in the Kansas City Terminal Railway and the Terminal Railroad Association of St. Louis. This is intended to prevent the merged Union Pacific from gaining excessive control at important rail hubs.
CN also receives new trackage rights between Tuscola and East St. Louis, as well as switching rights between St. Louis and Kansas City. For the first time, CN is to be able to use Union Pacific's Neff Yard in Kansas City.
In parallel, Union Pacific and CN signed a second binding MoU. Union Pacific receives additional rights on the EJ&E line around Chicago. In return, CN receives rights between Memphis and Eagle Pass at the Mexican border. This would allow CN to offer more rail services between Canada and Mexico in the future.
However, the matter is not yet decided. Although the U.S. rail regulator Surface Transportation Board, STB for short, has accepted the revised merger application for review, the proceedings have been temporarily suspended until Union Pacific and Norfolk Southern provide additional information. The deadline for this runs until July 27, 2026.