The Surface Transportation Board accepted the merger application from Union Pacific Corporation (NYSE: UNP) and Norfolk Southern Corporation (NYSE: NSC), moving the proposed combination forward in the regulatory review process.

The STB requested additional information on the companies' amended merger application. Union Pacific CEO Jim Vena said the company submitted a comprehensive application backed by a detailed integration plan. Norfolk Southern President and CEO Mark George stated the amended application strengthened their analysis and enhanced integration planning.

The application uses actual traffic data from all six North American Class I railroads, according to the companies. The proposed merger would create what the companies describe as a transcontinental railroad system.

The companies project the combination would remove an estimated 2.1 million truckloads from roads annually and save shippers approximately $3.5 billion per year by shifting freight from trucks to rail. The merger is projected to require approximately 1,200 net new union jobs by the third year.

The companies stated they will provide a jobs guarantee for every union employee with a position at the time of the merger. More than 2,000 stakeholders have submitted letters of support for the application, including customers, labor organizations, short line railroads, ports and business groups.

The STB has 12 months from the date it publishes its acceptance to complete its evidentiary proceedings under the governing statute. The companies expect to complete the transaction in mid-2027.

The information is based on statements from the companies' press release.