Overview

• Union Pacific and Norfolk Southern entered nonbinding merger talks in Q1 2025 with no formal agreement in place.
• Union Pacific has hired Morgan Stanley to oversee due diligence as it seeks to form the first coast-to-coast freight railroad to better compete with trucking.
• Norfolk Southern’s market value of about $60 billion would combine with Union Pacific’s roughly $140 billion valuation to create a network worth nearly $200 billion.
• The proposal must secure signoff from the Surface Transportation Board, the Justice Department, union groups and the president.
• Norfolk Southern shares jumped over 4% in after-hours trading and CSX stock rose about 3% on takeover speculation, while Union Pacific shares remained largely flat.