Summary
Union Pacific plans to buy Norfolk Southern for $85 billion, creating the first coast-to-coast freight rail operator in the U.S. This would be the largest railroad merger ever if approved, affecting how goods are transported across the country and facing significant regulatory review.
Key Facts
- Union Pacific is based in Omaha, Nebraska, and wants to buy Norfolk Southern.
- The proposed deal is worth $85 billion.
- If approved, this would be the largest merger in the railroad industry.
- Union Pacific operates mostly in the western U.S., while Norfolk covers 22 eastern states.
- Together, they estimate a combined value of $250 billion and $2.75 billion in savings.
- Norfolk Southern's stock price includes an 18.6% premium from its previous value.
- The merger faces regulatory review for up to 22 months due to concerns about job losses and service issues.
- Other railroad companies are considering mergers because of this deal.
