UP, NS Refiled Merger Application: TD Cowen Insight
NEW YORK –– Jason Seidl of TD Cowen shares his insights into the revised UP+NS merger application submitted to the Surface Transportation Board (STB) this week.
Author: Jason Seidl, Elliot Alper, Uday Khanapurkar
Former Rail Executive: UP-NS Deal Likely to Get Done & Other Views –– Commentary From TD Cowen Via Railway Age
NEW YORK –– We hosted a former Class I CEO to review the recent Union Pacific-Norfolk Southern merger application. He sees a very strong filing with acceptance likely though not until 2027. The CGP (Committed Gateway Pricing) solution enhances competition and should pass STB’s test. The network plan supports disclosed truck conversion opportunities in transcontinental and watershed lanes. Competitors are likely compelled to adapt and could eventually propose their own combinations.
Transcon Merger Discussion with a Former Class I CEO –– Commentary from Railway Age
We hosted a call with a former Class I CEO on the implications of a transcontinental merger. Our panelist believes the merger will enable significant share gains over the long term, more
Vena’s Art of the Deal With NS – Commentary
OMAHA and ATLANTA –– Union Pacific’s (UP) much-anticipated bid for Norfolk Southern (NS) was announced July 29. Both now embark on a lengthy review process, but we see the potential approval pathway justified due to U.S. supply chain benefits. NS operates well, supporting a pivot in focus to the review process. NS takeout PT moves to $320 in line with the announcement. Reiterate Buy as entry point is attractive while event-based investors remain on the sidelines.
Getting Closer to a Merger Deal? Commentary
OMAHA and ATLANTA –– Unconfirmed reports over the weekend noted a Class I merger is close. These reports were preceded by actions by the STB that show the agency is preparing to handle a review in a more expedited fashion with a merger resource page already up, and a notice that the Board is embarking on taking steps to expedite regulatory processes. We continue to believe a deal is highly likely between Union Pacific and Norfolk Southern.