Union Pacific reached a deal with Canadian National Railway to give the Montreal railroad further access in the Midwest in exchange for ending its opposition to Union Pacific's $71.5 billion merger with Norfolk Southern.

Under the proposed agreement, CN would get rights to run its trains on tracks between Tuscola and East St. Louis, Ill., as well as rights to serve customers between St. Louis and Kansas City, Mo., the companies said Wednesday.

CN would also get access to certain shipper facilities where railroad options would be reduced as a result of the merger, and would acquire Norfolk Southern's ownership interests in the Kansas City Terminal Railway Company and the Terminal Railroad Association of St. Louis.

In exchange, CN would no longer oppose the pending merger of Union Pacific and Norfolk Southern.

CN had pressured U.S. federal regulators in recent months to demand more information from the two players as they sought approval for their merger. In May, CN urged the Surface Transportation Board to reject the companies' amended merger application, arguing that it omitted information needed to assess the effect their combination would have on competition.

Union Pacific's agreement with CN comes as the blockbuster merger with Norfolk Southern faces hurdles after the Surface Transportation Board paused its review of the deal. The federal regulator said in May it needed more information to evaluate the two railroads' revised application for the merger. The deal has also faced resistance from customers and rivals who argue that it would drive up freight prices and dampen competition.

CN and Union Pacific's settlement agreement, which is contingent on approval from the Surface Transportation Board and the closing of the merger, aims to preserve customer options and resolve terminal railroad ownership issues, the companies said.

Union Pacific Chief Executive Jim Vena said the deal with CN aligns with the goals of his company's merger with Norfolk Southern to preserve and improve competitive options and create a stronger railroad industry.

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

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

July 22, 2026 19:43 ET (23:43 GMT)

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