Union Pacific, Norfolk Southern announce $71.5B rail merger

Union Pacific has agreed to acquire Norfolk Southern in a $71.5 billion cash-and-stock deal, valuing Norfolk at $320 per share.

The merger will create the first coast-to-coast freight railroad in US history, connecting 50,000 miles of track from the ports of California to the Jersey Shore.

The deal values Norfolk Southern at $85 billion.

Union Pacific CEO Jim Vena says the tie-up will streamline rail service, reduce handoffs, and offer manufacturers and farmers direct port access. The combined network could boost exports and reduce trucking reliance.

What lies ahead
The deal faces tough regulatory approval from the Surface Transportation Board, which is wary after past mergers triggered traffic snarls and safety issues.

Labor unions warn of job losses, while chemical and manufacturing groups oppose a potential rise in shipping rates. 

Regulators fear the merger could limit competition and reduce safety investments. 

If approved, it will be the most expansive US rail deal since the $28 billion Canadian Pacific–Kansas City Southern merger.