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Ancora Urges CSX to Pursue Merger or Face Leadership Shake-Up

By  |  August 20, 2025

Activist investor Ancora Holdings is calling on CSX to either pursue a major rail merger in the near term or replace its chief executive, according to a letter disclosed on Monday. The investor pressed the Jacksonville-based freight operator to weigh potential tie-ups with BNSF Railway, owned by Warren Buffett’s Berkshire Hathaway, and Canadian Pacific Kansas City, per Reuters.

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    Ancora argued that CSX risks losing ground if Union Pacific and Norfolk Southern move ahead with plans to operate as a unified transcontinental network. The investor criticized the company for not engaging with Union Pacific earlier in the year and suggested regulators may be more open to reviewing several rail mergers at once. “If a deal cannot be struck, we assume it will not take us running a proxy contest to ensure a qualified operator replaces Mr. Hinrichs,” the letter said.

    The investor further emphasized that advancing any merger discussions sooner rather than later would be strategically beneficial. “Getting something done as early as possible during the pro-business Trump Administration should also be a priority,” Ancora wrote, adding that “shareholders cannot afford more missteps as CSX plays catch-up in the rail consolidation race.”

    Read more: Supreme Court Declines to Hear CSX Antitrust Case Against Norfolk Southern

    In response, CSX told Reuters it remains open to exploring opportunities that enhance shareholder value and welcomes feedback from investors. However, the Brotherhood of Railroad Signalmen, which represents more than 1,200 CSX employees, cautioned against decisions that prioritize short-term returns over long-term stability. “We are not opposed to innovation or progress,” union President Michael Baldwin said. “What we are opposed to is a slash-and-burn approach from hedge funds and consultants whose relationship with the railroad ends the moment their profits are secured.”

    Ancora’s private letter, dated August 6, arrives amid significant upheaval in the U.S. rail sector. Union Pacific has already announced plans for an $85 billion acquisition of Norfolk Southern, a move that would create the country’s first coast-to-coast freight railroad and reshape supply chain routes for goods and agricultural products, according to Reuters.

    Source: Reuters