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CSX CEO opposes railroad mergers as counter productive

CSX CEO says railroad mergers don't make sense and any deal would have a hard time getting regulatory approval

CSX CEO opposes railroad mergers as counter productive

OMAHA, Neb. (AP) -- CSX railroad's chief executive doesn't think railroad mergers -- like the one Canadian Pacific has proposed with Norfolk Southern -- should be pursued.

CEO Michael Ward said he doesn't think railroad mergers make much sense because they don't offer significant benefits and federal regulators might not approve them.

Ward says major railroads already have plenty of room to improve and expand capacity without a merger. And most possible deals wouldn't involve much track overlap, so he says they wouldn't offer many synergies.

Ward says regulators could also require railroads to make changes as part of approving a deal that would add costs.

So far, Norfolk Southern has rejected all of Canadian Pacific's offers, but the back-and-forth may evolve into a proxy fight because Canadian Pacific wants shareholders to decide.

Updated : 2021-10-21 17:13 GMT+08:00