JACKSONVILLE, Fla. — CSX has declined to comment on a Bloomberg report that it has engaged Goldman Sachs to advise it about potential merger options.
Today’s news comes in the wake of this week’s announcement that Union Pacific will acquire Norfolk Southern in an $85 billion deal that would create the first transcontinental railroad.
Industry analysts believe the UP-NS combination will put pressure on BNSF Railway and CSX to respond, either through a merger of their own or by BNSF launching a bid for NS. BNSF has declined to comment.
CSX CEO Joe Hinrichs said last week — prior to the UP-NS announcement — that the railroad would not rule out merger talks.
The planned UP and NS tie-up, announced this week, has naturally piled some significant pressure on rivals including CSX and Berkshire Hathaway’s BNSF to pursue their own deals in order to stay competitive… It looks like another surprise merger is on the way.
Dr. Güntürk Üstün