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Fresh blow to CP Rail’s merger hopes as U.S. House Transportation chief opposes union with Norfolk Southern

CP, which is Canada's second-largest railroad, disclosed in mid-November a US$28 billion offer for Norfolk Southern.

WASHINGTON/CHICAGO – The chairman from the U.S. House Transportation and Infrastructure Committee announced his opposition to Canadian Pacific’s proposed railroad merger with Norfolk Southern Corp, dealing a fresh blow towards the prospect of a deal.

“I don’t believe it is within the best interests of the U.S. freight transportation system, railroad employees, rail shippers and also the short line railroads,” Representative Bill Shuster, a Pennsylvania Republican, said in a statement.

“In my opinion it is time for those parties to move on from hypothetical merger proposals,” he said.

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