Union Pacific has entered talks to acquire Norfolk Southern, aiming to build a powerful coast-to-coast rail network that could redefine freight transportation in the United States. This is reported by the railway transport news portal Railway Supply.

Union Pacific Targets Historic Railroad Deal

The Wall Street Journal reported the negotiations on the 17th. Union Pacific holds a market capitalization of about $140 billion, while Norfolk Southern is valued near $60 billion. If completed, the deal would be the largest U.S. transaction this year.

Union Pacific Eyes Norfolk Southern Merger
Union Pacific train

The proposed merger would combine two complementary networks. Union Pacific serves 23 states across the western and central regions, while Norfolk Southern dominates the East. Together, they would create a seamless route for cross-country freight movement.

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Union Pacific and Norfolk Southern to Reshape U.S. Freight

CEO Jim Bena stated that merging would improve service and efficiency. However, regulators must approve the deal, which faces strict antitrust scrutiny. Authorities have long expressed concern about competition risks in large-scale rail mergers.

Norfolk Southern has faced recent challenges. The Ohio derailment in 2023 damaged its reputation, and activist investors pressured leadership changes. CEO Alan Shaw’s exit added to the uncertainty surrounding the company’s strategic direction.

If approved, this would mark the most significant railroad merger since 2023. That year, Canadian Pacific and Kansas City Southern joined forces, creating the first rail network linking Canada, the United States, and Mexico. Analysts predict further consolidation may follow.

Source: www.mk.co.kr

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