Rail Merger Pause Suggests Regulator Wants Faster Final Decision

Speeding up means slowing down as far as the Surface Transportation Board is concerned with Union Pacific Corp. taking over Norfolk Southern Corp. to form the nation’s first coast-to-coast network.

The federal agency last week nominally accepted the application, which addresses potential issues a combined railroad might create for shippers, other railroads or the public. But it paused consideration while giving the railroads two months to detail how a union would “enhance competition” in the public interest, per a 2001 rule.

That approach sidesteps friction with President Donald Trump, who has said he supports a merger. It ...