New York New York USA - According to the Wall Street Journal, United Parcel Service Incorporated has sent a letter to the Surface Transportation Board (STB), saying that it is against the merger between Norfolk Southern (NS) and Canadian Pacific (CP).
 
According to it, the unification would have grave consequences for intermodal shippers, including organizations that use both, rail and trucks to convey goods.
 
Besides the impact on intermodal firms, the shipping company is also concerned that other mergers may follow in the industry if this union goes through, ultimately reducing competition.
 
UPS is one of the largest customers of the United States rail network, and its concerns are expected to create an impact.
 
However, the letter may not matter much now, as CP has changed its approach to the merger.
 
Instead of relying on a proxy fight to gain control of the board, CP will look to NS's shareholders to encourage talks between the two railways.
 
CP will attempt to introduce a non-binding resolution at the upcoming annual shareholders' meeting, and a setback there would most likely indicate an end to the merger.
 
CP CEO Hunter Harrison had said that a hostile takeover was looking less likely with NS refusing to sit at the negotiations table.
 
Moreover, the deal faces opposition from politicians, other railways, and customers.
 
Speaking at a recent conference, Mr. Harrison criticized railway executives that were against the merger, which he believes will help reduce costs and improve services.
 
CP first made a bid back in November 2015, and since then has made two more offers, but NS has repeatedly rejected its proposals, with the last offer worth US$30 billion.
 
NS, for its part, has reiterated that it will not contribute to further discussions unless an offer is received that represents fair value and is also eligible to go through the regulatory concerns.
 
Hassan Ali.