NATIONAL NEWS – Union Pacific acquires Norfolk Southern in $85B deal, creating first coast-to-coast U.S. Rail Network

Ananya Roy, News Writer

Union Pacific announced Tuesday it will acquire Norfolk Southern in a landmark $85 billion cash-and-stock merger that would form the nation’s first coast-to-coast freight rail network. The combined company will control 50,000 miles of track across 43 states and handle roughly 43% of U.S. rail freight, raising significant antitrust concerns. Union Pacific CEO Jim Vena called the merger “a great deal for America,” promising faster shipping and fewer bottlenecks, while Norfolk Southern CEO Mark George said the tie-up could boost jobs and put the railroads back on a growth path.

But regulators and unions are wary. Rail labor groups fear consolidation could compromise safety and job security, and lawmakers from both parties warned the deal might reduce competition and drive up shipping costs in an already concentrated industry. The Surface Transportation Board will scrutinize the proposal, which would shrink the number of major U.S. freight railroads from six to five. If approved, the deal could close by early 2027, reshaping a sector already under pressure from trucking competitors and years of customer complaints about reliability.