Overview

• Union Pacific has retained Morgan Stanley to evaluate potential acquisition options involving Norfolk Southern and possibly CSX.
• Early-stage discussions with Norfolk Southern carry no guarantee of an agreement or approval by the Surface Transportation Board.
• Analysts forecast a 16- to 22-month regulatory review process, including formal application, evidentiary hearings and a final ruling.
• Shares of CSX and Norfolk Southern rose about 3% following the reports, while Union Pacific’s stock slipped by roughly 1%.
• A completed merger would create the nation’s first single-line coast-to-coast freight railroad, aiming to reduce Chicago interchange delays and bolster competition against trucking.