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Union Pacific Company and Norfolk Southern Company introduced a landmark merger deal on Tuesday that may create America’s first transcontinental railroad, linking greater than 50,000 route miles from coast to coast.
Union Pacific will purchase Norfolk Southern for $320 per share in a cash-and-stock deal. The supply is predicated on Union Pacific’s unaffected closing inventory value on July 16 and represents a 25% premium over Norfolk Southern’s 30-day volume-weighted common value as of that date.
| Ticker | Safety | Final | Change | Change % |
|---|---|---|---|---|
| UNP | UNION PACIFIC CORP. | 229.24 | +4.50 | +2.00% |
| NSC | NORFOLK SOUTHERN CORP. | 286.42 | +4.04 | +1.43% |
Whereas the deal values Norfolk Southern at $85 billion, the mixed corporations can be price greater than $250 billion.
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A Norfolk Southern locomotive at a rail yard in Chicago on Friday, July 25, 2025. (Photographer: Jim Vondruska/Bloomberg through Getty Pictures / Getty Pictures)
If authorized, this could mark one of many largest rail mergers in U.S. historical past. It is also the primary time a single firm will management rail shipments from the East Coast to the West Coast. The businesses touted that the merger wouldn’t solely reshape the U.S. logistics panorama, however revitalize U.S. manufacturing at scale and drive financial progress and job creation whereas concurrently preserving union jobs.
The businesses additionally imagine the railroad will assist the U.S. compete extra successfully with Canadian railroads, with the objective of reclaiming U.S. freight quantity and bringing again American jobs.
It would additionally tackle rival BNSF, owned by Warren Buffett’s Berkshire Hathaway.
Warren Buffett is CEO of Berkshire Hathaway, which owns BNSF Railway in his conglomerate Berkshire Hathaway. (Photographer: Houston Cofield/Bloomberg through Getty Pictures / Getty Pictures)
At the moment, U.S. freight railroads transport roughly 1.5 billion tons of products annually.
“Railroads have been an integral a part of constructing America for the reason that Industrial Revolution, and this transaction is the following step in advancing the trade,” Union Pacific Chief Government Officer Jim Vena mentioned in an announcement. “Think about seamlessly hauling metal from Pittsburgh, Pennsylvania to Colton, California and shifting tomato paste from Heron, California to Fremont, Ohio. Lumber from the Pacific Northwest, plastics from the Gulf Coast, copper from Arizona and Utah, and soda ash from Wyoming.”
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The businesses additionally mentioned the transcontinental railroad will ship sooner, extra complete freight service to U.S. shippers by eliminating interchange delays, opening new routes, increasing intermodal companies, and shortening distance and transit instances alongside key rail corridors. It’s also anticipated to lower freeway congestion, decreasing wear-and-tear on taxpayer-funded roads.
The businesses mentioned that each union worker, together with practice crew, mechanical and engineering staff, could have a chance on the merged entity. Given the anticipated rail quantity progress, there may also be further employment alternatives in cities and cities throughout the mixed rail community, the businesses mentioned.
A Union Pacific intermodal container on an overpass close to the Union Pacific Railroad World 1 rail yard in Chicago on Friday, July 25, 2025. (Jim Vondruska/Bloomberg through Getty Pictures / Getty Pictures)
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“This mix is transformational, enhancing the very best freight transportation system on the earth – it is a win for the American financial system, it is a win for our clients, and it’s a win for our folks,” Vena mentioned.
The Board of Administrators of each Union Pacific and Norfolk Southern unanimously authorized the transaction, which is topic to Floor Transportation Board overview and approval inside its statutory timeline, customary closing circumstances and shareholder approval.
A Union Pacific intermodal container on an overpass close to the Union Pacific Railroad World 1 rail yard in Chicago on Friday, July 25, 2025. (Jim Vondruska/Bloomberg through Getty Pictures / Getty Pictures)
The businesses anticipate to file their utility with the Floor Transportation Board inside six months. The businesses are aiming to shut the deal by early 2027.
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