Helena, Montana – Austin Knudsen is leading a multistate effort urging federal regulators to closely examine a proposed merger between two of the nation’s largest freight railroad companies. The Montana attorney general joined a coalition of state attorneys general in calling on the United States Department of Justice to review the potential union of Union Pacific and Norfolk Southern, warning that the deal could weaken competition and drive up shipping costs nationwide.
In a joint letter addressed to Acting Assistant Attorney General Omeed Assefi, the coalition asked the Department of Justice Antitrust Division to conduct a thorough review. The request comes as the Surface Transportation Board considers whether to approve the transaction. State officials believe federal scrutiny is essential to ensure the board has a full understanding of the merger’s potential impacts.
Concerns over competition and rising costs
A preliminary review conducted by the attorneys general concluded that the companies have not adequately addressed the loss of horizontal competition the merger could create. Officials warned that combining two major rail networks could limit shipping options and increase rates for businesses and consumers.
“By entrenching a single rail behemoth across key east-west corridors, the deal would shackle domestic manufacturers, energy producers, and farmers with higher rates and fewer shipping options, thereby blunting their competitive edge against foreign rivals, squeezing household budgets, and weakening the supply chains that underpin our national security,” Attorney General Knudsen wrote in the letter. “Accordingly, we encourage the Department of Justice Antitrust Division to carefully scrutinize the merger, applying the existing law and merger guidelines to support the Surface Transportation Board’s review of the transaction.”
The coalition also raised concerns that the merger could reduce cooperation with other railroads for interline services, which allow freight to move across different rail systems. They questioned whether commitments to keep connection points open would be enforceable.
While Union Pacific has argued the merger would boost growth and improve efficiency, the attorneys general pointed to the company’s nearly decade-long decline in rail service as a reason for heightened scrutiny.
Attorneys general from Iowa, Kansas, Mississippi, North Dakota, South Dakota, and Tennessee joined Montana in signing the letter, underscoring broad regional concern over the potential economic and supply chain impacts.
State officials emphasized that freight rail plays a critical role in moving agricultural goods, energy resources, and manufactured products. They say ensuring fair competition and reliable service is essential for protecting local economies, controlling consumer costs, and maintaining resilient supply chains.
