{"id":258692,"date":"2025-07-29T16:02:25","date_gmt":"2025-07-29T06:02:25","guid":{"rendered":"https:\/\/www.railfreight.com\/?p=64598"},"modified":"2025-07-29T16:02:25","modified_gmt":"2025-07-29T06:02:25","slug":"biggest-rail-freight-merger-in-us-history-estimated-at-72-billion-dollars","status":"publish","type":"post","link":"https:\/\/www.vibewire.com.au\/?p=258692","title":{"rendered":"Biggest rail freight merger in US history estimated at 72 billion dollars"},"content":{"rendered":"

Union Pacific (UP) and Norfolk Southern (NS), two of the largest operators in the United States, might finalise an agreement for a merger already this week. First estimates say that UP values NS around 72 billion dollars (62 billion euros).<\/strong>
\n<\/span>The idea of UP purchasing NS to create the first coast-to-coast railway operator in the US surfaced last week. The two companies already confirmed that they are in advanced talks, and now UP revealed what it thinks NS is worth. The company said it values NS\u2019 shares 320 dollars (276 euros) each, and Bloomberg estimated a total equity value of 72 billion dollars, which would make it the largest of its kind by a landslide.<\/p>\n

It might take a while<\/h2>\n

However, industry experts point out that the whole process might take up to two years and the probability of it actually happening remains quite low, around 25 or 30%. Even if the two companies finalise the deal, the last word belongs to the Safety Transportation Board (STB), and the process could take a while, Bloomberg\u2019s transport analyst Lee Klaskow pointed out.<\/p>\n

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\n\"Union
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\n\"Norfolk
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The rail networks of Union Pacific (left) and Norfolk Southern (right) span much of the United States. Images: \u00a9 Wikimedia Commons<\/figcaption><\/figure>\n

Considering that it took about 18 months for a much smaller merger, the one that led to the creation of CPKC<\/a>, a unification of two bigger companies is likely to require more attention and time. UP and NS \u201chave to prove that this deal is in the public interest\u201d, Klaskow underlined. In other words, they have to convince the STB that this massive deal for the first coast-to-coast railway operator in the US would not distort competition.<\/p>\n