Railroads Lose Appeal of U.S. Ban on Mergers

Burlington Northern Santa Fe Corp. and Canadian National Railway Co. lost a court appeal to overturn a U.S. ban on rail mergers, a decision that might kill their plan to create North America’s largest railroad. The U.S. Court of Appeals in Washington ruled 2 to 1 in favor of the 15-month moratorium imposed March 17 by the Surface Transportation Board. The agency was concerned that rail consolidation could trigger shipping disruptions like those in earlier mergers. The companies said they were “deeply disappointed” and that they won’t speculate on their options. Burlington Northern had said in March that it might scrap the plan if it had to wait the 15 months. The carriers, which want to form a railroad with 50,000 miles of track and $12 billion in sales, argued that the agency exceeded its authority.