WASHINGTON, Nov 14 (Reuters) - A group of nine

Republican state attorneys general on Friday raised competition

concerns about Union Pacific's ( UNP ) plan to buy smaller rival

Norfolk Southern ( NSC ) in an $85 billion deal to create the

first U.S. coast-to-coast freight rail operator.

The officials, led by Tennessee Attorney General Jonathan

Skrmetti and Kansas Attorney General Kris Kobach, in a letter to

the Surface Transportation Board, which was seen by Reuters,

said they were concerned the deal "will result in undue market

concentration that stifles competition and therefore creates

higher prices, lower reliability, and less innovation at the

expense of America's manufacturers and, ultimately, America's

consumers."

The tie-up, if approved, could reshape the U.S. freight rail

industry and help streamline operations and eliminate

interchange delays in key hubs like Chicago.

The attorneys general of the states - which also include

Ohio, Florida, North Dakota, South Dakota, Mississippi, Montana

and Iowa - said the merger could result in high internal

shipping costs that could "kneecap American companies' ability

to compete with foreign manufacturers."

They also warned that the "downstream impact of the merger

poses significant risk not just for our industrial base but also

our agricultural producers. Ultimately, then, this merger could

compromise our national security."

Union Pacific ( UNP ) said in response on Friday that it looks

forward to submitting its application to the STB "to detail how

this combination is good for America, meets the threshold of

advancing public interest and enhances competition." The

railroad added it had won support from key unions and others to

"ensure rail is not left behind."

Norfolk Southern ( NSC ) did not immediately comment.

Earlier on Friday, the railroads said that more than 99% of

shareholders at both companies voted in favor of the deal. The

STB review could take about 12 to 18 months.

The railroad industry has struggled with volatile freight

volumes, rising labor and fuel costs, and growing pressure from

shippers over service reliability.

In September, President Donald Trump said the merger "sounds

good to me" after he met with Union Pacific ( UNP ) CEO Jim Vena to

discuss the deal for the biggest U.S. rail merger in decades.

Union Pacific ( UNP ) dominates freight rail operations in the

Western United States, while Norfolk Southern ( NSC ) is a leading

carrier in the East. Together, they form two of the four major

U.S. Class I railroads, alongside BNSF Railway and CSX Corp ( CSX )

.