US railroad giant Union Pacific is set to merge with East Coast rival Norfolk Southern in a $85 billion deal. The combined company would be the first to offer coast-to-coast freight rail service, spanning over 50,000 miles of track and connecting 100 ports across 43 states.
The merger aims to increase efficiency in shipping goods across the country, reducing transit times by a day or two for customers. By integrating their networks, the companies hope to cut congestion on tracks and transport the same volumes of goods with fewer cars.
Executives say they expect the deal to be approved, despite concerns from unions about job losses and service disruptions. The Biden administration had previously shown skepticism towards big mergers, but the Trump administration is expected to take a looser approach.
The new company, Union Pacific Transcontinental Railroad, will have its headquarters in Omaha, Nebraska, where Union Pacific currently operates. Norfolk Southern’s headquarters remain in Atlanta, Georgia.
Under the deal, investors will receive $88.82 per share and a stake in the new company, valued at around $320 per share. The combined entity would be worth over $250 billion and create a major player in the US freight rail market.
The merger marks significant progress towards creating a unified coast-to-coast rail network, with Amtrak often relying on tracks controlled by other companies to operate its trains across the country.
Source: https://www.bbc.com/news/articles/cx2qll58914o