Canadian National Railway announced that it will keep reviewing the amended merger application submitted by Union Pacific and Norfolk Southern to the Surface Transportation Board (STB). The company said the applicants have not made sufficient changes to address the competitive harms identified by the regulator and that CN will remain actively engaged in the review process.
The UP‑NS merger, valued at roughly $85 billion, is expected to close in the first half of 2027. The STB had previously rejected the initial application filed in December 2025 for incompleteness, and the amended filing is now under scrutiny. CN’s concerns focus on the potential for the combined entity to control about 40 % of U.S. freight rail traffic, which could reduce competition on key corridors and raise freight rates.
CN’s statement highlights specific competitive harms, including route consolidation that could limit shippers’ options, increased pricing power for the merged carrier, and the risk of reduced service quality on overlapping networks. The company believes these issues are not adequately addressed in the current application and that the STB must impose conditions to protect competition and the public interest.
In its Q1 2026 earnings, CN reported revenue of C$4.38 billion, a 0.5 % decline from C$4.40 billion in Q1 2025. Adjusted earnings per share were C$1.80, down 3 % year‑over‑year from C$1.87, largely due to higher winter‑related costs, incident costs, and a higher effective tax rate. Despite the revenue dip, the company achieved record revenue ton‑miles and strong free‑cash‑flow growth, and it maintained its full‑year guidance, signaling confidence in its operational execution.
Investors reacted to the mixed financial picture, focusing on the revenue decline and cost pressures even though earnings met expectations. The market’s tempered response reflects concerns that the slight revenue contraction and higher operating costs could erode margins in the near term, despite the company’s operational gains.
CN’s continued engagement in the merger review underscores its strategy to preserve a competitive rail landscape. By actively challenging the UP‑NS application, CN aims to protect its market share and ensure that freight rates and service levels remain favorable for shippers, while also positioning itself against other industry players such as BNSF Railway that are monitoring the filing.
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