OMAHA — The U.S. Surface Transportation Board accepted a revised merger application from Union Pacific on May 28 for its proposed $85 billion cash-and-stock acquisition of Norfolk Southern. The board subsequently paused the review process to request additional information and public comments.

This action followed President Trump's statement in May that he sought a 15 percent federal stake in the pending railroad merger. Trump said, "So they said 'No,' but they'll say 'Yes.'" The board had previously rejected Union Pacific's initial merger application in January.

Jim Vena, Union Pacific Chief Executive Officer, commented on the proposed deal and the president's remarks. Vena stated, "We're a company that can afford to make this deal. We're a company that can afford to handle what the price is for this deal, and we do not need anybody's help to do this."

Vena clarified that no direct communication had occurred regarding a federal partnership. "Listen, I have not had any direct communication with the president of the United States to talk about the president and the government specifically coming in and being a partner in this." Vena said. The board stated, "In a future decision, the board will establish an appropriate procedural schedule for the remainder of the proceeding."

The freight railroad industry operates under regulatory oversight from the board, which applies a public interest standard to mergers. It is exempt from Federal Trade Commission antitrust review. The federal government has not held ownership in freight railroads since the 1920s. The company has contributed to the Trump White House ballroom project and unveiled locomotive No. 4547, referencing the 45th and 47th presidential terms. The company stated there is no connection between these actions and the pending merger.