Union Pacific (UNP) Faces Near-Term Pressure After Merger Setback, Susquehanna Says

Union Pacific Corporation (NYSE:UNP) is included among the 12 Most Profitable Dividend Stocks to Buy in 2026.

On January 19, Susquehanna said it expects Union Pacific Corporation (NYSE:UNP) shares to trade modestly lower on Tuesday after the US Surface Transportation Board rejected the company’s proposed merger with Norfolk Southern. The decision was issued “without prejudice,” meaning the door is still open. The board invited the companies to resubmit the application once the gaps are addressed, according to the analyst’s note. Susquehanna said it still believes the deal will eventually get approved and kept a Buy rating on Union Pacific.

The regulatory pushback was confirmed in a Reuters report. The STB sent Union Pacific’s proposed $85 billion merger back for revision, saying the filing lacked required information. The review comes as regulators revisit what enhanced competition should look like under stricter merger rules adopted in 2001.

In its ruling, the board said the December application was incomplete. It cited missing projections around market share and competitive impact. By rejecting the filing without prejudice, the STB left room for the railroads to refile once those issues are addressed.

The decision also follows a January submission from Canadian National, which argued the application fell short on key competitive disclosures. That included how the companies identified routes where two rail lines funnel into one, as well as full lists of shippers that could be affected. Without that information, stakeholders would struggle to properly assess the merger’s impact, CN said.

Union Pacific and Norfolk Southern filed their nearly 7,000-page application on December 19. In it, they argued the combination would improve service reliability, shift freight from trucks to rail, preserve shipper choice, and deliver broad public benefits, all while protecting union jobs.

Union Pacific Corporation (NYSE:UNP) operates one of the largest rail networks in the US, spanning more than 23 states across the western two-thirds of the country. Its rail system plays a central role in moving goods through the domestic and global supply chain.

READ NEXT: Dividend Contenders List: Top 20 Stocks and 15 Best High Yield Stocks To Buy.

Disclosure: None.