Latest news with #coasttocoast
Yahoo
a day ago
- Business
- Yahoo
Factbox-Major rail mergers that reshaped the US freight network
(Reuters) -Union Pacific said on Tuesday it would buy smaller rival Norfolk Southern in an $85-billion deal to create the country's first coast-to-coast freight rail operator. Such mergers have historically reshaped the rail map, consolidating regional carriers into some dominant networks, but often come under intense scrutiny from the Surface Transportation Board. Landmark mergers in the past - such as the creation of BNSF and between Union Pacific and Southern Pacific - have set the stage for today's concentrated rail network, often triggering both operational gains and regulatory pushback. Here are some of the largest railroad deals in the past three decades: Year Merger Deal value Note 1995 Burlington Northern & $4.1 Created one of the Santa Fe billion largest U.S. railroads at the time 1996 Union Pacific & $5.4 The merger caused Southern Pacific billion significant operational problems and shipping delays that led to tougher regulatory standards 1998 CSX & Norfolk Southern $10.2 Conrail was split split Conrail billion between CSX and Norfolk Southern in a joint acquisition 2023 Canadian Pacific & $31 billion First single-line Kansas City Southern railroad linking the U.S., Canada and Mexico 2025 Union Pacific & First Norfolk Southern $85 billion coast-to-coast freight rail operator Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
New York Times
a day ago
- Business
- New York Times
Union Pacific to Buy Norfolk Southern in $85 Billion Railroad Deal
Union Pacific, a freight rail giant, announced on Tuesday that it had reached an agreement to acquire Norfolk Southern, another large railroad, in a deal worth $85 billion. The merger would create the United States' first coast-to-coast rail network and span some 50,000 miles across 43 states. But the deal would put around two-fifths of rail freight in the hands of one company, raising fears that it would reduce competition in a crucial industry. Union Pacific, which operates west of the Mississippi River, and Norfolk Southern, whose tracks are mostly east of it, said the combined company would deliver freight faster by eliminating the need to switch railroads and opening new routes.. 'Railroads have been an integral part of building America since the Industrial Revolution, and this transaction is the next step in advancing the industry,' Jim Vena, chief executive of Union Pacific, said in a news release on Tuesday. The new company would be called Union Pacific Transcontinental Railroad. Union Pacific said it was offering a combination of cash and stock for Norfolk Southern. 'It will make the railroads more efficient,' said Tony Hatch, a veteran rail analyst at ABH Consulting. 'And it adds reliability, which is the biggest rail issue.' The combined company would have over 50,000 employees, four-fifths of whom belong to unions. The merger announcement comes two and a half years after a Norfolk Southern train carrying hazardous materials derailed in East Palestine, Ohio, upending life in the town for months. Last year, the company fired of its chief executive for having an affair with its chief legal officer. Want all of The Times? Subscribe.
Yahoo
a day ago
- Business
- Yahoo
Factbox-Major rail mergers that reshaped the US freight network
(Reuters) -Union Pacific said on Tuesday it would buy smaller rival Norfolk Southern in an $85-billion deal to create the country's first coast-to-coast freight rail operator. Such mergers have historically reshaped the rail map, consolidating regional carriers into some dominant networks, but often come under intense scrutiny from the Surface Transportation Board. Landmark mergers in the past - such as the creation of BNSF and between Union Pacific and Southern Pacific - have set the stage for today's concentrated rail network, often triggering both operational gains and regulatory pushback. Here are some of the largest railroad deals in the past three decades: Year Merger Deal value Note 1995 Burlington Northern & $4.1 Created one of the Santa Fe billion largest U.S. railroads at the time 1996 Union Pacific & $5.4 The merger caused Southern Pacific billion significant operational problems and shipping delays that led to tougher regulatory standards 1998 CSX & Norfolk Southern $10.2 Conrail was split split Conrail billion between CSX and Norfolk Southern in a joint acquisition 2023 Canadian Pacific & $31 billion First single-line Kansas City Southern railroad linking the U.S., Canada and Mexico 2025 Union Pacific & First Norfolk Southern $85 billion coast-to-coast freight rail operator Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
Union Pacific to buy Norfolk in $85 billion mega US railroad deal
(Reuters) -Union Pacific (UNP) said on Tuesday it would buy smaller rival Norfolk Southern (NFS.F) in an $85 billion deal, to create the nation's first coast-to-coast freight rail operator and reshape the movement of goods from grains to autos across the country. If approved, the deal would combine Union Pacific's stronghold in the western two-thirds of the U.S. with Norfolk's 19,500 mile network that primarily spans 22 eastern states. This would mark the largest-ever buyout in the sector, merging Union Pacific, the biggest U.S. railroad operator, with Norfolk, one of the top players, granting the combined company transcontinental dominance. On Thursday, the two companies had said they were in advanced discussion for a possible merger. The transaction faces numerous regulatory hurdles and will serve as a key test of the changed thinking around antitrust issues under President Donald Trump. Since early 2025, the U.S. Surface Transportation Board, the federal regulatory agency overseeing railroads, has signaled a more industry-friendly approach to merger reviews. Chairman Patrick Fuchs, appointed to the post in January by Trump, has advocated for faster timelines for preliminary assessments, a greater focus on competitive balance rather than blocking consolidation, and a willingness to enforce conditions post-merger rather than deny deals preemptively. The talks have also prompted competitors BNSF, owned by Berkshire Hathaway, and CSX, to explore merger options, people familiar with the matter said. Union Pacific's deal for Norfolk would also need support from labor unions and could invite scrutiny from several other federal agencies. Major railroad unions have long opposed consolidation, arguing that such mergers threaten jobs and risk disrupting rail service. The North American rail industry has been grappling with volatile freight volumes, rising labor and fuel costs, and growing pressure from shippers over service reliability, factors that could further complicate the merger. The last major deal in the industry was the $31 billion merger of Canadian Pacific and Kansas City Southern, which created the first and only single line rail network connecting Canada, the U.S., and Mexico. That deal, finalized in 2023, faced heavy regulatory resistance over fears it would curb competition, cut jobs, and disrupt service, but it was ultimately approved. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Zawya
a day ago
- Business
- Zawya
Union Pacific to buy Norfolk in $85bln mega US railroad deal
Union Pacific said on Tuesday it would buy smaller rival Norfolk Southern in an $85 billion deal, to create the nation's first coast-to-coast freight rail operator and reshape the movement of goods from grains to autos across the country. If approved, the deal would combine Union Pacific's stronghold in the western two-thirds of the U.S. with Norfolk's 19,500 mile network that primarily spans 22 eastern states. This would mark the largest-ever buyout in the sector, merging Union Pacific, the biggest U.S. railroad operator, with Norfolk, one of the top players, granting the combined company transcontinental dominance. On Thursday, the two companies had said they were in advanced discussion for a possible merger. The transaction faces numerous regulatory hurdles and will serve as a key test of the changed thinking around antitrust issues under President Donald Trump. Since early 2025, the U.S. Surface Transportation Board, the federal regulatory agency overseeing railroads, has signaled a more industry-friendly approach to merger reviews. Chairman Patrick Fuchs, appointed to the post in January by Trump, has advocated for faster timelines for preliminary assessments, a greater focus on competitive balance rather than blocking consolidation, and a willingness to enforce conditions post-merger rather than deny deals preemptively. The talks have also prompted competitors BNSF, owned by Berkshire Hathaway, and CSX, to explore merger options, people familiar with the matter said. Union Pacific's deal for Norfolk would also need support from labor unions and could invite scrutiny from several other federal agencies. Major railroad unions have long opposed consolidation, arguing that such mergers threaten jobs and risk disrupting rail service. The North American rail industry has been grappling with volatile freight volumes, rising labor and fuel costs, and growing pressure from shippers over service reliability, factors that could further complicate the merger. The last major deal in the industry was the $31 billion merger of Canadian Pacific and Kansas City Southern, which created the first and only single line rail network connecting Canada, the U.S., and Mexico. That deal, finalized in 2023, faced heavy regulatory resistance over fears it would curb competition, cut jobs, and disrupt service, but it was ultimately approved. (Reporting by Shivansh Tiwary and Sabrina Valle, additional reporting by Abhinav Parmar and Mariam Sunny; Editing by Sriraj Kalluvila)
