By Esther Fung

Freight railroad Canadian Pacific Kansas City opposes Union Pacific's and Norfolk Southern's proposed $71.5 billion merger, saying it will result in a disproportionately large railway whose size and scope will force others to take action.

The proposed merger that would create the first transcontinental railroad in the U.S. will "trigger permanent restructuring of the industry," said Keith Creel, CPKC's President and CEO. "This will likely result in an unnecessary wave of railway mergers that today is not the best way to support American businesses nor the public interest, and has the potential to create more issues than it solves."

The benefits of a transcontinental merger can be achieved through other means, such as partnerships, customer service innovations and additional cooperation among the major railroads, added CPKC. Canadian Pacific Kansas City is the smallest of the so-called Class 1 railroads and was itself the result of a merger between Canadian Pacific and Kansas City Southern in 2023.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

August 26, 2025 12:02 ET (16:02 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.