The Santa Fe-Southern Pacific merger was an attempted combination of the Atchison, Topeka and Santa Fe Railway and the Southern Pacific Railroad.
Announced in September 1983 for roughly $5 billion, a new holding company called Santa Fe Southern Pacific Corporation acquired the two major western United States railroads. Southern Pacific remained in a voting trust, and the railroads operated independently during the regulatory process.
In March 1984, the companies sought approval from the Interstate Commerce Commission (ICC) to merge. Optimistic of approval, the railroads started repainting their locomotives, anticipating a future SPSF railroad.
However, in July 1986, the ICC denied the merger and ordered the companies to separate within two years. Southern Pacific was sold to Rio Grande Industries for $1.02 billion in October 1988, while their California real estate holdings became Catellus Development Corporation.
The holding company then renamed itself Santa Fe Pacific Corporation, retaining the Santa Fe Railroad and related businesses.
