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Union Pacific Corporation and Norfolk Southern Corporation announced a landmark merger deal on Tuesday that will create America’s first transcontinental railroad, linking more than 50,000 route miles from coast to coast.
Union Pacific will acquire Norfolk Southern for $320 per share in a cash-and-stock deal. The offer is based on Union Pacific’s unaffected closing stock price on July 16 and represents a 25% premium over Norfolk Southern’s 30-day volume-weighted average price as of that date.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| UNP | UNION PACIFIC CORP. | 229.24 | +4.50 | +2.00% |
| NSC | NORFOLK SOUTHERN CORP. | 286.42 | +4.04 | +1.43% |
While the deal values Norfolk Southern at $85 billion, the combined companies will be worth more than $250 billion.
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A Norfolk Southern locomotive at a rail yard in Chicago on Friday, July 25, 2025. (Photographer: Jim Vondruska/Bloomberg via Getty Images / Getty Images)
If approved, this would mark one of the largest rail mergers in U.S. history. It’s also the first time a single company will control rail shipments from the East Coast to the West Coast. The companies touted that the merger would not only reshape the U.S. logistics landscape, but revitalize U.S. manufacturing at scale and drive economic growth and job creation while simultaneously preserving union jobs.
The companies also believe the railroad will help the U.S. compete more effectively with Canadian railroads, with the goal of reclaiming U.S. freight volume and bringing back American jobs.
It will also take on rival BNSF, owned by Warren Buffett’s Berkshire Hathaway.
Warren Buffett is CEO of Berkshire Hathaway, which owns BNSF Railway in his conglomerate Berkshire Hathaway. (Photographer: Houston Cofield/Bloomberg via Getty Images / Getty Images)
Currently, U.S. freight railroads transport approximately 1.5 billion tons of goods each year.
“Railroads have been an integral part of building America since the Industrial Revolution, and this transaction is the next step in advancing the industry,” Union Pacific Chief Executive Officer Jim Vena said in a statement. “Imagine seamlessly hauling steel from Pittsburgh, Pennsylvania to Colton, California and moving tomato paste from Heron, California to Fremont, Ohio. Lumber from the Pacific Northwest, plastics from the Gulf Coast, copper from Arizona and Utah, and soda ash from Wyoming.”
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The companies also said the transcontinental railroad will deliver faster, more comprehensive freight service to U.S. shippers by eliminating interchange delays, opening new routes, expanding intermodal services, and shortening distance and transit times along key rail corridors. It is also expected to decrease highway congestion, reducing wear-and-tear on taxpayer-funded roads.
The companies said that every union employee, including train crew, mechanical and engineering workers, will have an opportunity at the merged entity. Given the expected rail volume growth, there will also be additional employment opportunities in towns and cities across the combined rail network, the companies said.
A Union Pacific intermodal container on an overpass near the Union Pacific Railroad Global 1 rail yard in Chicago on Friday, July 25, 2025. (Jim Vondruska/Bloomberg via Getty Images / Getty Images)
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“This combination is transformational, enhancing the best freight transportation system in the world – it’s a win for the American economy, it’s a win for our customers, and it’s a win for our people,” Vena said.
The Board of Directors of both Union Pacific and Norfolk Southern unanimously approved the transaction, which is subject to Surface Transportation Board review and approval within its statutory timeline, customary closing conditions and shareholder approval.
A Union Pacific intermodal container on an overpass near the Union Pacific Railroad Global 1 rail yard in Chicago on Friday, July 25, 2025. (Jim Vondruska/Bloomberg via Getty Images / Getty Images)
The companies expect to file their application with the Surface Transportation Board within six months. The companies are aiming to close the deal by early 2027.
