Berkshire Hathaway Rules Out CSX, Norfolk Southern Rail Acquisitions Amid Industry Mergers

Warren Buffett, chairman of Berkshire Hathaway, has confirmed that his company has no plans to acquire another railroad, including CSX Corporation, despite recent speculation fueled by the $85 billion Union Pacific and Norfolk Southern merger. Buffett and CEO-designate Greg Abel met privately with CSX CEO Joseph Hinrichs to clarify that while no acquisition will occur, closer cooperation between Berkshire’s BNSF Railway and CSX could offer many of the benefits of a merger without the regulatory risks and costs. The two railroads recently announced an expanded coast-to-coast freight service and new intermodal international service, reflecting this strategic partnership. Investors reacted negatively to Buffett’s announcement, with CSX shares dropping over 4%, as hopes for a major railroad consolidation were dampened. Industry analysts note that while Berkshire Hathaway is ruling out acquisitions, pressure remains on rail operators to explore transformative combinations in a rapidly consolidating sector. Berkshire’s approach emphasizes collaboration and efficiency rather than costly mergers, distinguishing its strategy from other major rail deals in the market.