Union Pacific to Create First Coast-to-Coast Rail Giant

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Union Pacific to Create First Coast-to-Coast Rail Giant
July 29th, 2025

Union Pacific has announced an $85 billion acquisition of Norfolk Southern, a deal that will create the first U.S. coast-to-coast freight rail operator. The proposed merger would connect Union Pacific’s large western network with Norfolk’s 19,500-mile eastern network to improve the transportation of goods such as grain and automobiles.

The combined company would have an enterprise value of around $250 billion and is expected to generate $2.75 billion in annual cost synergies. The offer of $320 per share represents an 18.6% premium over Norfolk’s price before merger speculation surfaced.

The deal is facing a lot of challenges from regulators and labor unions. Rail worker groups, including SMART-TD, are saying that the merger could lead to service disruptions and job losses. They are planning to lobby the Surface Transportation Board (STB) and the Trump administration to stop the deal.

The regulatory process may take up to 22 months, even with the new leadership at the STB that is pushing for faster reviews and more flexible merger terms. The Biden-era opposition to consolidation has been reversed by President Trump, who has signed executive orders that ease antitrust barriers.

While the railroads are saying that the merger will bring operational efficiencies and network expansion, labor leaders are not convinced. “This merger is not good for labor, the rail shipper, or the public,” said SMART-TD President Jeremy Ferguson, whose union represents more than 1,800 yardmasters.

Dominic Maley

Dominic Maley is an American journalist recognized for his sharp and insightful reporting on social and political issues. His work is known for its depth, integrity, and the ability to highlight critical societal concerns.

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