Union Pacific and Norfolk Southern submitted a revised merger application to the Surface Transportation Board on Thursday. The proposed tie-up aims to create the first U.S. coast-to-coast freight rail operator.
Union Pacific hopes the new application will persuade regulators that the acquisition would be good for the country. While the proposal is described as an $85 billion merger, the amended application also refers to a $72 billion deal that would save shippers $3.5 billion annually. The application states the merged railroad would have a 39% market share and provides conditions under which Union Pacific would walk away from the tie-up.
The proposal has met with resistance. On Wednesday, a coalition of organized labor, rival railroads, and business groups announced its opposition to the merger.