OTTAWA -- The most serious potential obstacle to Canadian National Railway Co.'s takeover of Wisconsin Central Transportation Corp. fell away yesterday after U.S. regulators said the deal will get a speedy review, according to the National Post.

The U.S. Surface Transportation Board has declared the US$1.2-billion acquisition a "minor transaction," meaning the review will be completed by Sept. 7. Had the merger been declared "major," it could have taken 18 to 24 months and likely would have killed the deal.

"We believe the record will show that the transaction merits the agency's approval. The procedural schedule for this minor transaction is realistic and should give interested parties ample time to comment," said Paul Tellier, CN's president and chief executive.

The merger, announced in January, will see CN absorb the much smaller WCTC, whose lines run primarily west of Lake Michigan and south of Lake Superior. It secures CN's access to Chicago from the northwest.

While analysts like the transaction, some have suggested the US$800-million price, with another US$400-million of assumed debt, was at the high end of the range. At worst, the deal is seen as neutral, although CN has said it will realize US$60-million in synergies in three years.

CN said the purchase should be approved because it is end to end and will cause no disruption to shippers. Already, it has been supported by the National Industrial Transportation League, more than 330 shippers, and assorted local government and public bodies.

Unlike CN's last merger, the aborted link-up with Burlington Northern Santa Fe, other major railways have not voiced opposition. One of the few critics thus far has been Great Lakes Transportation, which sought to have it treated as a major transaction.

One stipulation in the purchase agreement is that CN could walk away without penalty were it declared a major transaction by the STB.

Some analysts speculated CN wants to complete the deal quickly so it will be free to move when a moratorium on major rail mergers in the United States expires in June.