Canadian National Railway Co. has agreed to withdraw its opposition to Union Pacific Corp.'s proposed US$85 billion acquisition of Norfolk Southern, striking a deal that resolves one of the most significant regulatory roadblocks to the merger.
The agreement marks a decisive shift in the long-running standoff between the North American rail giants, clearing the path for the transaction to move forward toward final regulatory approval.
The resolution comes after more than three months of stop-start negotiations and public disputes dating back to late February.
During this period, the uncertainty surrounding the merger had created volatility in global energy and commodities markets, as traders priced in the risk of a blocked deal or prolonged regulatory scrutiny.
With CN Railway stepping aside, the immediate threat of a competitor-led regulatory veto has been neutralized.
This development is critical for Union Pacific and Norfolk Southern, as CN Railway was a key stakeholder whose opposition could have derailed the combination.