Over the weekend, unsubstantiated news reports indicated that UNP is close to finalizing a deal to acquire NSC and could be announced as early this week. This news came on the heels of UNP confirming that it is in “advanced” talks with the Atlanta, Ga.-based Class I carrier. We continue to believe it is highly likely a deal will be announced as we first indicated.
While the likelihood of a deal being announced between UNP and NSC appears to be increasing, the regulators are taking steps to prepare. The Surface Transportation Board (STB) has set up a merger resource page to help prepare the industry and interested parties for a potential transaction. This action was preceded by an announcement by Chairman Fuchs that the board will hold meetings on how to improve competition and reduce regulatory barriers. These meetings are set to be held in early August.
A typical review of a Class I merger could take about 18 months, and it appears the current Board will look to streamline the process further. We are still waiting for POTUS 47 to appoint a fifth member to the STB. Once an appointment is announced, it would likely take a minimum of 6 months for confirmation. The STB does have a few extra hands after the appointment of three senior advisors back in May to assist with driving efficiency and regulatory reform at the agency.
