Union Pacific And Norfolk Southern Enter Merger Talks
Railroad giants Union Pacific (UNP) and Norfolk Southern (NSC) have entered into merger talks, according to media reports.
The Wall Street Journal was first to report on the potential merger that would shake-up the railroad business in North America.
Both Union Pacific and Norfolk Southern stock are up in premarket trading on reports of a possible merger.
Currently, Union Pacific is the larger of the two railroads with a market capitalization of $136 billion U.S. Norfolk Southern is valued at $60 billion U.S.
Wall Street analysts are generally bullish on consolidation in the railroad industry, saying it helps to boost efficiencies and profit margins.
A merger of Union Pacific and Norfolk Southern would bring together Western and Eastern rail carriers in the U.S., potentially creating a stronger national network in the U.S.
News of the Union Pacific and Norfolk Southern tie-up comes after the merger of Canadian Pacific and Kansas City Southern in 2023 that created a rail network that stretches across Canada, the U.S. and Mexico.
The value and timing of a merger between Union Pacific and Norfolk Southern is not yet known and any deal would face regulatory scrutiny.
The stock of Union Pacific is flat on the year and trading at $227.49 U.S. per share. Norfolk Southern’s stock has gained 15% on the year to change hands at $269.81 U.S. a share.
