STB Introduces Web Pages Dedicated to Rail Merger Information
The Surface Transportation Board (STB) oversees the regulatory review process for Class I railroad mergers in the United States, ensuring a thorough evaluation of the merger's impact on competition and the public interest.
The process begins when the railroads notify the STB of their intent to merge, followed by a comprehensive review of the merger application. This review includes environmental assessments and potential hearings, with a typical timeline of 19 to 22 months. However, the length of the review can extend to about two years depending on the complexity of the environmental review or any additional hearings required.
The updated regulations adopted by the STB in 2001 impose a significantly higher standard on Class I mergers compared to the previous rules, which encouraged consolidation. Under the current standards, railroads must demonstrate that their merger will enhance competition and be in the public interest. Notably, these 2001 rules have not yet been tested in a major Class I merger.
In addition to STB approval, any Class I merger must secure stockholder approval, undergo scrutiny by the Department of Justice, and face Congressional oversight. The timeline for a merger between large railroads like Union Pacific and Norfolk Southern, currently in advanced talks, would likely extend beyond the regulatory approval due to these additional steps.
| Aspect | Details | |-----------------------------------|-------------------------------------------| | Regulatory body | Surface Transportation Board (STB) | | Review process | Notification, detailed review, environmental assessment, hearings if needed | | Timeline | Typically 19-22 months; can extend to about 2 years | | Standard for approval | Merger must enhance competition and serve public interest (2001 rules) | | Additional approvals | Stockholder approval, Department of Justice review, Congressional oversight | | Latest notable merger timeline | Canadian Pacific–Kansas City Southern: ~2 years under older rules |
This timeline and process are subject to adjustment based on specific merger circumstances, environmental impacts, and any additional hearings required by the STB.
[1] Surface Transportation Board. (n.d.). Class I Railroad Merger Review Process. Retrieved from https://www.stb.gov/mergers/
[2] Surface Transportation Board. (n.d.). Merger Resources. Retrieved from https://www.stb.gov/mergers/
[3] Reuters. (2025, July 1). Union Pacific, Norfolk Southern in advanced talks on potential merger - sources. Retrieved from https://www.reuters.com/business/union-pacific-norfolk-southern-advanced-talks-potential-merger-sources-2025-07-01/
- The regulatory review process for potential mergers within the aerospace and finance industries may follow a similar comprehensive approach as the one handled by the Surface Transportation Board (STB) for Class I railroad mergers, complete with environmental assessments, potential hearings, and evaluations of competition and public interest.
- In the transportation sector, it's common for regulatory bodies like the STB to require merging entities, such as those in the finance and aerospace industries, to secure stockholder approval, undergo scrutiny by government bodies, and face Congressional oversight, which can result in a lengthy process, often extending beyond the standard regulatory approval timeline.
