Published 2 days ago • loading... • Updated 2 days ago

CSX Railroad’s Merger Prospects Derail as BNSF and CPKC Make Clear They Aren’t Interested in a Deal

On Tuesday, Canadian Pacific Kansas City joined BNSF in rejecting near-term rail consolidation, leaving Jacksonville, Florida-based railroad CSX without a viable merger partner and reshaping competitive dynamics.
Citing regulatory uncertainty, the company said a transcontinental merger would 'trigger permanent restructuring' and likely prompt an 'unnecessary wave of railway mergers', with the U.S. Surface Transportation Board review expected to take 17 to 22 months.
Companies instead announced new coast-to-coast intermodal services, and CSX's stock nearly hit $37.25 last week before falling to $32.31 Tuesday after merger hopes faded.
The withdrawals reduce odds that the $85 billion Union Pacific-Norfolk Southern merger will spur more consolidations, raising regulatory risks and prompting Ancora Holdings to pressure CSX to act or change leadership.
With only six major class I railroads, the U.S. freight rail industry features regional duopolies and limited shippers' options, while past mergers like Conrail and Southern Pacific caused disruptions prompting the STB's high merger standards.

Insights by Ground AI

Does this summary seem wrong?

Podcasts & Opinions

35 Articles

Associated Press News

+31 Reposted by 31 other sources

Lean Left

CSX railroad's merger prospects derail as BNSF and CPKC make clear they aren't interested in a deal

The prospects for additional consolidation in the rail industry derailed this week when both of CSX's potential partners said they weren't interested in a deal.

2 days ago·United States

Read Full Article