The merger would combine Union Pacific’s dominance in the western US with Norfolk Southern’s 19,500-mile rail network across 22 eastern states|James St. John|CC BY 2.0
The country’s largest railroad operator, Union Pacific, is in talks to merge with rival Norfolk Southern to create a $200 billion company. If the deal closes, it would be the biggest railroad merger in US history.
Union Pacific is currently valued at $138 billion, while Norfolk Southern holds a $63 billion valuation, according to LSEG data.
The potential business agreement could create the first modern West-to-East single-line railroad, combining Union Pacific’s dominance in the western US with Norfolk Southern’s 19,500-mile network across 22 eastern states.
The merger comes at a time when the North American railroad industry is facing challenges like high fuel and labor costs, unpredictable freight volumes, and reliability issues.
The ripple effects are already visible: competitors CSX and BNSF (owned by Berkshire Hathaway) are exploring merger options of their own, and the Surface Transportation Board (STB), overseeing railroads, is preparing for multiple megadeals.
However, the merger faces major regulatory scrutiny, requires labor union approval, and could take 19 to 22 months to complete.
While the Trump administration’s pro-business stance may ease the path, critics warn it could lead to a duopoly, raise shipping rates, cost jobs, and disrupt rail service.