Canadian Pacific Railway's (NYSE:CP) bid to acquire Norfolk Southern (NYSE:NSC) faces another obstacle as the top two lawmakers on a Senate Judiciary subcommittee for antitrust matters are raising concerns about the deal.
In a letter to the U.S. attorney general's office regarding the voting trust CP has proposed, the senators say the trust could limit railroad regulators' ability to "protect competition and the public interest."
Opposition to the merger is growing: Other railroads including CSX, Union Pacific and BNSF worry that a CP-NSC combination would lead to further consolidation and rail mergers, and railroad competitors and companies such as FedEx and UPS have raised concerns.
Earlier: FedEx latest to oppose CP Rail-Norfolk Southern merger (Mar. 3)
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