Critics Take Aim at Proposed Merger Of BNSF, Canadian National Railways
The proposed merger of the Burlington Northern Santa Fe and the Canadian National railroads may face a major hurdle in the form of a review by federal regulators.
In announcing their proposal Dec. 20, the railroads, which combined would have a stock market valuation of greater than $19 billion, declared that the merger would create efficiencies that would allow them to compete with trucks for freight.
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It will not make things any easier for the $6 billion union that competing railroads — bucking the tradition by which rails do not publicly denounce each other’s mergers — and shippers seem to be lining up to criticize the deal.
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However, the combined entity, which would be called North American Railways and would represent the largest railroad on the continent, faces significant obstacles before it even begins to haul freight. The railroads themselves have taken steps to ensure their financial protection should the deal fall through.
