CN (NYSE: CNI) and Union Pacific (NYSE: UNP) have signed a binding Memorandum of Understanding that establishes a framework for CN to obtain competitive access rights in connection with the proposed merger between Union Pacific and Norfolk Southern (NYSE: NSC), according to a statement released July 22, 2026.

The agreement is contingent on approval by the Surface Transportation Board (STB) and the closing of the Union Pacific-Norfolk Southern merger. Under its terms, CN will gain access to shipper facilities where Class I railroad options would otherwise be reduced, where commercially and operationally feasible.

CN will also acquire Norfolk Southern's ownership interests in the Kansas City Terminal Railway Company and the Terminal Railroad Association of St. Louis. In addition, CN gains overhead rights between Tuscola, Illinois, and East St. Louis, Illinois, along with rights to serve customers between St. Louis, Missouri, and Kansas City, Missouri. The agreement also grants CN usage of Union Pacific's Neff Yard in Kansas City.

In exchange, CN agreed it will not oppose the Union Pacific-Norfolk Southern merger. Both companies said they will work together through the STB process to implement the agreement.

"This settlement agreement reinforces those commitments by giving expanded access and operating rights to a tough competitor," said Union Pacific CEO Jim Vena.

"This framework would preserve competitive access to key markets, including Kansas City, while positioning CN to continue providing reliable and efficient options for customers across North America," said CN President and CEO Tracy Robinson.