In a short statement released this morning, House Transportation & Infrastructure Committee Chairman Bill Shuster (R-PA) stated his opposition to the prospect of a merger between Canadian Pacific (CP) and Norfolk Southern (NS).
CP has been attempting a semi-hostile takeover of NS, vying to apply an unusual voting trust structure and make a direct appeal to NS shareholders. NS’s own management – as well as all the other Class 1 carriers – have opposed the merger several times.
CP is currently seeking a declaratory order from the Surface Transportation Board (STB) on the viability of their proposed voting trust – a structure that TCU opposed, since a merger of the sort would invariably cost the jobs of thousands of workers at NS, and even CP.
See the full statement below:
Washington, DC, Apr 5 | Jim Billimoria, Justin Harclerode (202) 225-9446 | 0 comments
Transportation and Infrastructure Committee Chairman Bill Shuster (R-PA) today released the following statement in opposition to Canadian Pacific Railway’s proposal to merge with Norfolk Southern:
“I have closely followed Canadian Pacific’s attempts to merge with another railroad over the past several years, and after looking at the merits of the current proposal to merge with Norfolk Southern, I do not believe it is in the best interests of the U.S. freight transportation system, railroad employees, rail shippers, and the short line railroads. Since 2014, CP has been actively pursuing a merger, first with CSX, and now three different proposals to merge with Norfolk Southern, all of which have been rejected. A strong, healthy, and well-functioning freight rail system is critical to the movement of goods in this country. However, CP’s pursuit of a merger over the last two years has done nothing but create uncertainty in the rail industry, and there continues to be no clear path forward for such an arrangement. I have expressed my concerns to the appropriate federal agency, and I believe it is time for all parties to move on from hypothetical merger proposals and focus on improving the transportation of goods and products to help grow the American economy.”