Union Pacific and Norfolk Southern have more homework to do after federal regulators late Friday gave their 7,000-page merger application an incomplete instead of a passing grade.
The Surface Transportation Board in a 15-page decision (PDF) rejected the merger application, and two related applications, as incomplete. UP (NYSE: UNP) and NS (NYSE: NSC) can file a revised application, subject to the same 30-day completeness review, but must notify the board of their refiling plans by Feb. 17.
“Union Pacific will provide the additional information requested by the Surface Transportation Board,” the Omaha-based company said in a statement to FreightWaves.
The STB said that UP and NS omitted post-merger market share projections, as well as other documents required by law.
The rejection caps a tumultuous period since the partners filed the application Dec. 19, during which rival carriers and shippers used their own filings to show why the application fell short, and reiterate their opposition to consolidation of the industry.
UP and NS kept up their own campaign, insisting that a merger would modernize the national rail network, help grow rail freight, and spur industrial development.
“We applaud today’s STB decision to reject the UP/NS merger application based on the application lacking core information critical to determining the proposed merger’s impact on competition,” said Zak Andersen, BNSF chief of staff and vice president of communications, in a statement. “We also appreciate the STB’s willingness to consider the views of all stakeholders as part of the regulatory review process.”
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