WASHINGTON — Union Pacific will walk away from its proposed acquisition of Norfolk Southern if federal regulators order widespread trackage rights or line sales as part of their approval of the $85 billion deal.
The only exception: If the combined railroad is required to spin off one of its duplicative main lines between Kansas City and St. Louis. If the merger is approved, UP would have a pair of K.C.-St. Louis routes, including its former Missouri Pacific via Jefferson City, Mo., and NS’ former Wabash via Moberly, Mo.
The information from the railroads’ merger agreement was disclosed on Thursday in the revised merger application they filed with the Surface Transportation Board…