Overview

• Both Union Pacific and Norfolk Southern boards have unanimously approved an $85 billion cash-and-stock merger that would unite western and eastern networks into a single carrier.
• Norfolk Southern shareholders will receive one Union Pacific share plus $88.82 in cash per share, valuing their stock at about $320 each.
• The combined company projects it can generate $1.75 billion in new annual revenue and eliminate $1 billion in costs through streamlined operations.
• Final approval depends on STB sign-off and securing support from railroad labor unions wary of potential job losses and service disruptions.
• Competitors BNSF and CSX are assessing their own merger and alliance strategies in response to the proposed consolidation.