Canadian Pacific (NYSE:CP) dropped 3.2% as the U.S. Dept. of Justice reiterated that the U.S. railroad regulator should block the Canadian Pacific (CP) merger with Kansas City Southern. CP was also likely weaker following guidance from rival Canadian National (CNI). CNI fell 4.6%.

“During the Board’s September 28, 2022 hearing on the above-captioned transaction, the applicants argued that the Board should infer that the Antitrust Division does not believe the transaction has the potential to cause harm,” the DOJ wrote in a letter Tuesday to the Surface Transportation Board or STB. “No such inference should be drawn.”

The DOJ said it was reiterating comments it first made in April 2021 that the the railroad regulatory had “serious concerns” about increasing consolidation in the industry.

“The Antitrust Division supports and appreciates the Board’s careful attention to protecting competition in this important industry, and, as always, appreciates the opportunity to cooperate on this important priority,” the DOJ said in the letter on Tuesday.

The letter was earlier reported by Bloomberg.

Canadian Pacific (CP) closed on its acquisition of Kansas City Southern in December 2021, winning a bidding war with rival Canadian National Railway (CNI) for KSU. Following close. ownership of KSU is held in a voting trust while the STB reviews the combination.