STB greenlights CN’s acquisition of Iowa Northern Railway

Decision places conditions on $230M deal to address concerns about competition

WASHINGTON – The Surface Transportation Board on Tuesday approved Canadian National’s acquisition of 218-mile regional Iowa Northern Railway.

The board’s decision also imposed several conditions to offset potential anticompetitive aspects of the $230 million deal. Among them: development of a scheduled local service plan, keeping gateways open on commercially reasonable terms and maintaining competitive access to locations with voluntary reciprocal switching agreements.

The merger will become effective on Feb. 13. The board also approved a pair of related trackage-rights deals. CN gains trackage rights between Cedar Falls and Manly, Iowa, and Iowa Northern gains rights from CN’s Chicago, Central & Pacific on routes out of Waterloo, Iowa. 

The 3-1 vote reflected a split on the board, which failed to meet its own July deadline to reach a decision in the case. Chairman Robert E. Primus cast the lone vote against the deal, while board members Patrick Fuchs, Karen Hedlund and Miche…

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