Coal Giant Peabody Backs Union Pacific Merger With Rival (1)

The nation’s largest coal producer is backing a proposed merger between Union Pacific Corp. and Norfolk Southern Corp. to form the nation’s first coast-to-coast rail network despite concerns that an approved deal could hurt shippers.

“Our company depends on efficient, reliability, and cost-effective rail service to meet the needs of our customers and ensure the safest, timely delivery of our products to dozens of state across the country and globally,” Jim Grech, president and CEO of the St. Louis-based Peabody Energy Corp., said in a letter included in the merger application the railroads filed Thursday.

Peabody is ...