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Union Pacific in Early Talks to Acquire Norfolk Southern, Potentially Creating Largest US Railroad

By  |  July 20, 2025

Railroad giant Union Pacific is reportedly in initial discussions to purchase its smaller competitor Norfolk Southern, in a move that could establish the country’s largest rail operator, according to sources familiar with the situation.

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    The negotiations are described as being in the early stages, and there is no certainty that a deal will be reached or approved by regulators, per WSJ. The possibility remains that other potential buyers could enter the fray as well.

    Union Pacific boasts a market capitalization of roughly $140 billion, while Norfolk Southern’s valuation is near $60 billion. Following news of the talks, Norfolk Southern’s stock surged about 3% in after-hours trading, while Union Pacific’s shares declined by approximately 2%, Reuters reports.

    If successful, the merger would forge an extensive rail network stretching across the continent, handling a significant portion of freight traffic in the United States. Currently, no single railroad company operates a network that spans coast to coast in the country.

    Union Pacific’s CEO Jim Vena has publicly advocated for the creation of a transcontinental railroad in recent months. Vena has highlighted how such a system could alleviate existing delays caused by handoffs between different rail operators, improving overall service efficiency.

    However, any potential merger would likely face rigorous scrutiny from multiple regulatory bodies, including the Surface Transportation Board (STB)—the primary economic regulator for freight railroads—as well as the Department of Justice, investors, Amtrak, and various labor unions, according to Reuters.

    Market analysts have suggested that Union Pacific’s interest in a merger may be influenced by a regulatory climate considered more favorable under the Trump administration. Patrick Fuchs, the current chairman of the STB, who assumed his position in January, has pledged to accelerate rulings on disputes and legal proceedings. Earlier this year, Fuchs announced efforts to expedite several longstanding cases, signaling a shift toward faster regulatory decisions.

    Source: WSJ