Norfolk Southern, Union Pacific Discuss Rare Rail Merger

Norfolk Southern and Union Pacific have confirmed they are in advanced talks regarding a potential merger that could result in a rare coast-to-coast freight rail network. Both companies cautioned that there is no certainty a deal will be reached and plan to provide updates only if necessary. The merger would create one of North America's largest freight transportation systems by combining Norfolk Southern’s eastern U.S. network with Union Pacific’s western operations. News of the talks led to an increase in Norfolk Southern shares while Union Pacific's stock fell, indicating market uncertainty. Any agreement would face significant regulatory scrutiny and require approval from the Surface Transportation Board due to potential impacts on industry competition. The talks reflect ongoing consolidation trends as rail companies seek greater efficiency and expanded reach.