Union Pacific in mega US railroad merger talks with rival Norfolk
OMAHA, NEBRASKA, JUL 24 – Union Pacific's second-quarter profit rose to $1.8 billion with operating revenue up 2%, while merger talks with Norfolk Southern could reshape U.S. freight rail competition.
- On Thursday, Union Pacific reported a $1.8 billion second-quarter profit in Omaha, Nebraska.
- Last week, sources told The Associated Press that merger discussions began between Union Pacific and Norfolk Southern, aiming to connect East and West Coasts.
- Earnings data shows Union Pacific's operating revenue grew 2% to $6.2 billion, with per-share earnings rising to $3.03, beating last year's $2.71, and analysts' expectations.
- Market reaction was positive, with railroad shares climbing amid a regulatory debate over approval; the outlook remains uncertain.
- Under the 2001 rules, two years ago the U.S. Surface Transportation Board approved the $31 billion CPKC deal, highlighting the precedent for major rail mergers and their regulatory considerations.
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