Union Pacific to buy Norfolk Southern in $85 billion mega US railroad deal
UNITED STATES, JUL 29 – The $85 billion deal aims to create a transcontinental rail network spanning 43 states and over 50,000 route miles, promising faster deliveries and $1 billion in annual cost savings.
- Union Pacific announced on July 29, 2025, it will acquire Norfolk Southern in an $85 billion deal creating America's first transcontinental railroad.
- The deal follows advanced discussions since early 2025 and faces high regulatory scrutiny due to past merger disruptions and antitrust concerns.
- The merger combines Union Pacific's western network with Norfolk Southern's 19,500-mile rail system across 22 eastern states, promising streamlined deliveries nationwide.
- Norfolk Southern shareholders will receive one Union Pacific share and $88.82 in cash per share, with estimated annual synergies of $2.75 billion and a combined valuation over $200 billion.
- If approved by early 2027, this transaction may trigger further railroad consolidations but faces opposition from unions concerned about jobs and service disruptions.
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Located in the west of the country, Union Pacific proposed, on Tuesday 29 July, to buy its rival in the east, Norfolk Southern. In rail freight, key to the US economy, the current wave of mergers could lead to an unprecedented duopoly controlling 90% of the market.
The US railway company Union Pacific wants to swallow the rival Norfolk Southern. For the first time, a company could control the entire route between the east and west coasts of the USA. But the concerns are great.
Headlines from across the state: Union Pacific and Norfolk Southern seek first transcontinental railroad through a massive merger; more …
Here are some of the top headlines from other news outlets around Virginia. Some content may be behind a metered paywall: Economy: Union Pacific and Norfolk Southern seek first transcontinental railroad through a massive merger. — Associated Press. Seven Virginia businesses land on Fortune Global 500. — Virginia Business (paywall). Health care: VCU Health to stop medicinal care for transgender youth. — Richmond Times-Dispatch (paywall). Centra S…
Number 1 in US freight transport, Union Pacific, takes over number 4, Norfolk Southern. Why this is historical.
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