The Santa Fe–Southern Pacific merger was an attempted corporate consolidation of two of the major railroads in the Western United States at the time: the Atchison, Topeka and Santa Fe Railway and the Southern Pacific Railroad. The approximately deal (US$ in dollars) was announced in September 1983 and in December 1983, both companies were acquired by a new holding company, the Santa Fe Southern Pacific Corporation and both companies extensive non-railroad related assets were immediately combined. However, the Southern Pacific Railroad remained in a voting trust and the railroads continued to be operated independently and competitively while the merger worked through the regulatory process. In March 1984, the companies asked the Interstate Commerce Commission (ICC) for approval to merge their railroads. Confident the deal would be approved, the company began repainting their locomotives into a new unified paint scheme that would allow the future railroad to be called SPSF. In a surprise July 1986 decision, the ICC denied the merger and gave the companies two years to split. Southern Pacific was sold to Rio Grande Industries for in October 1988, the companies California real estate holdings were spun off into a new company called Catellus Development Corporation which would become the State's largest private landowner, and the former holding company would rename itself Santa Fe Pacific Corporation and retain the Santa Fe Railroad and all the non-railroad businesses of both predecessors. History Amid an era of major railroad mergers and acquisitions, the Atchison, Topeka and Santa Fe Railway and the Southern Pacific Transportation Company announced on September 27, 1983, that they too would merge. Both were major railroads in the Western United States at the time. The merger had long been seen as a logical move, especially since other recent mergers had turned the Burlington Northern Railroad and the Union Pacific Railroad into much larger western railroads, with about the same annual rail revenue of Santa Fe and Southern Pacific combined, and the nation's third-largest railroad. In December 1983, both companies were acquired by a new holding company, the Santa Fe Southern Pacific Corporation, through a swap of approximately in stock. On March 23, 1984, Santa Fe Southern Pacific formally petitioned the Interstate Commerce Commission (ICC) to approve the merger of the two railroads and while the application was pending, the Southern Pacific remained in a voting trust, and the railroads continued to be operated independently and competitively while the