Union Pacific and Norfolk Southern have expressed a willingness to divest ownership stakes in certain smaller railroads as part of their proposed $85 billion merger, according to a filing with the Surface Transportation Board (STB) on Tuesday. The merger, if approved, would create the first freight rail operator with coast-to-coast reach in the United States.

In their submission, both companies stated they would not retain control over the Terminal Railroad Association of St. Louis (TRRA), the Kansas City Terminal Railway, and the TTX Company following the merger. These smaller railroads are currently jointly owned by several major carriers and are managed independently.

Union Pacific and Norfolk Southern indicated they would divest their interests in these entities if the STB directs such action. The railroads contend that other major carriers are leveraging their stakes in these smaller lines, particularly the TRRA, to obstruct or delay the merger process.

The two companies are scheduled to respond to additional questions from the STB by July 27. They anticipate completing the merger in the first half of 2027, highlighting that the consolidation could generate estimated annual savings of $3.5 billion for shippers.