OMAHA, Neb. — Union Pacific and Norfolk Southern could announce a tentative merger agreement as early as this week, according to a published report.
Bloomberg cited sources familiar with the talks in its report on Friday.
UP, the largest Class I railroad, and Atlanta-based NS confirmed last week that they are in advance discussions regarding a merger that would create the first U.S. transcontinental railroad. The proposed consolidation would produce a rail colossus valued at almost $200 billion, with some $36 billion in annual revenue based on 2024 earnings.
Union Pacific had no comment. Norfolk Southern did not immediately respond to a message from FreightWaves seeking comment.
It’s also likely that competitors such as BNSF Railway, Canadian National, and Canadian Pacific Kansas City would importune the Surface Transportation Board for concessions to balance potential competitive issues. The STB will ultimately accept or reject the deal. Industry observers have said that CN, in particular, could seek access to Mexico, after the 2023 Canadian Pacific-Kansas City Southern merger created the first single-line carrier serving Canada, the U.S., and Mexico.
The STB last week published a timeline estimating the review process could take up to 22 months once formal filings are submitted [see “STB creates merger resources page …,” Trains News Wire, July 25, 2025].
— A version of this article previously appeared at FreightWaves.com. Updated at 3:55 p.m. CT to correct annual revenue figure.
Industry concentration does not enhance competition or serve the public interest. Monopoly pricing yields zero or negative growth and 40% margins. Customers, the public and environment pay the price.
Looks like it’s finally coming true…
Dr. Güntürk Üstün
Something for the railfan: See big boy run east of Roanoke up the Blue Ridge grade and/or around horseshoe curve.
It should not surprise anyone if the take overs of both NS and CSX are approved and implemented by Jan 1 2027. That date because of possibility of changes in congress by that date. If not then maybe Jan 20, 2029. We are seeing absolutely no restrictions of mergers and acquisitions.
Great word – “importune.” To pester, or annoy.