U.S. Government Blocks

CN-Burlington Northern Merger

On March 17 the U.S. government ordered a moratorium on all railway mergers for at least 15 months, thereby blocking the proposed merger between Canadian National Railways and the Burlington Northern Santa Fe. The merger, which would have created the largest railway in the world, was opposed by other railways, including Canadian Pacific, as well as by American shippers. Previous rounds of railway mergers in the U.S. resulted in shipping bottlenecks and disruptions.

CN called the ruling by the U.S. Surface Transportation Board "against the public interest" and has already filed an appeal with the U.S. Court of Appeal in Washington D.C.. A CN spokesperson said that a 15-month delay could jeopardize the merger agreement.