Union Pacific Files Application to Merge With Freight Rival (1)

Union Pacific Corp. on Friday filed an application with the Surface Transportation Board to approve an $85 billion merger with Norfolk Southern Corp. to form the nation’s first transcontinental freight railroad.

The company has argued that a merger would cut shipping costs and speed deliveries while making the rail sector more competitive with trucking. Unions, rival railroads, and cargo shippers could ultimately block the merger with the board’s support.

An official joint application from the two companies begins a multistage process for the board, which has exclusive authority over major rail mergers, that will likely last until 2027. The STB ...