Union Pacific, Norfolk Southern Ink $85B Railroad Deal
Union Pacific Corporation and Norfolk Southern Corporation announced a merger to form the first-ever transcontinental railroad in the U.S. Under the terms of the deal, Union Pacific will acquire Norfolk Southern for $320 per share in a cash-and-stock transaction — a 25% premium over Norfolk Southern’s 30-day volume-weighted average price — valuing the company at $85 billion. The combined entity will have a market capitalization exceeding $250 billion.
The proposed merger, unanimously approved by both boards, would link more than 50,000 miles of rail, enabling uninterrupted freight service from coast to coast for the first time in U.S. history. The companies emphasized that the combination would modernize American logistics infrastructure, enhance domestic manufacturing competitiveness, and support job creation while maintaining union labor protections.
Union Pacific CEO Jim Vena described the deal as “transformational,” noting that the integration of East and West Coast routes will significantly improve freight efficiency. “Imagine seamlessly hauling steel from Pittsburgh, Pennsylvania to Colton, California and moving tomato paste from Heron, California to Fremont, Ohio. Lumber from the Pacific Northwest, plastics from the Gulf Coast, copper from Arizona and Utah, and soda ash from Wyoming.”
The deal comes amid growing competition with Canadian railroads that have aggressively expanded their North American reach through past mergers. Union Pacific and Norfolk Southern argue that their combination will help reclaim U.S. freight volumes, strengthen supply chain resilience, and restore rail as a preferred mode for long-haul domestic goods movement.
The companies committed to retaining all union jobs and creating additional opportunities in rail hubs and towns along the expanded network, citing expected volume growth. The merger still faces review from the Surface Transportation Board (STB) and must meet standard regulatory and shareholder approvals. The companies plan to file their STB application within six months, with the transaction targeted for completion in early 2027.