Union Pacific and Norfolk Southern Announce Merger to Create First Transcontinental Railroad
A proposed merger aims to form a coast-to-coast rail network, connecting 50,000 route miles across 43 states.
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Omaha, NE — On July 29, 2025, Union Pacific Corporation (NYSE: UNP) and Norfolk Southern Corporation (NYSE: NSC) announced a merger to create America’s first transcontinental railroad, connecting over 50,000 route miles across 43 states, as detailed in a joint press release.
The Details:
The deal values Norfolk Southern at $85 billion, forming a $250 billion enterprise, with Union Pacific acquiring it for $320 per share—a 25% premium based on July 16, 2025, prices—issuing 225 million shares for 27% ownership.
The merger will link 100 ports, streamlining freight delivery for manufactured goods such as steel and lumber and easing highway congestion, with a target closure by early 2027, pending regulatory and shareholder approval.
Union Pacific CEO Jim Vena said, “This transaction advances the industry… benefiting customers, communities, and employees.”
Norfolk Southern CEO Mark George added, “Our combined strengths will deliver for the American economy.”
Expected $2.75 billion in annual synergies and job security for workers highlight the deal’s impact.
Why It Matters:
This merger is expected to enhance shipping efficiency, preserve jobs, and drive economic value across the U.S.