Overview

• Union Pacific and Norfolk Southern announced advanced merger discussions to create a single freight network spanning from the East Coast to the West Coast.
• Both carriers warned there are no assurances a deal will be reached or finalized and said they will make no further comments unless disclosure becomes necessary.
• Any transaction would face a 16–22 month review by the Surface Transportation Board under enhanced competition rules.
• Major railroad unions are expected to challenge consolidation over potential job losses and safety disruptions.
• Following the announcement, Norfolk Southern’s stock rose 0.4 percent while Union Pacific’s shares fell 2.7 percent amid investor uncertainty.