The $10.2 billion joint acquisition of Conrail by Norfolk Southern Corp. and CSX Corp. was approved by the government Monday, promising competition to some areas of the Northeast for the first time in 22 years.
The Surface Transportation Board voted in favor of the merger, the biggest in U.S. railroad history, though some conditions attached to the merger after hearings last week must be met before it takes effect.
The two Eastern railroads will divide Conrail’s routes and facilities in the Northeast, and serve Conrail’s former customers in the New York City, Philadelphia and Detroit areas.
David R. Goode, chairman of Norfolk, Va.-based Norfolk Southern, said after the hearings that he is happy to be moving on to the next step “of the Conrail acquisition,” which he expects to wrap up before the end of the year.
Norfolk Southern will get about 58 percent of Conrail and will pay 58 percent of the cost, $5.9 billion.
