Latest news with #consolidation
Yahoo
13 hours ago
- Business
- Yahoo
Union Pacific--Norfolk Southern Merger Buzz Could Spur Berkshire to Target CSX
A potential merger between Union Pacific (UNP, Financials) and Norfolk Southern (NSC, Financials) could trigger Berkshire Hathaway (BRK.B, Financials) to pursue CSX (CSX, Financials) to protect its rail empire, Barron's reported Thursday. Warning! GuruFocus has detected 7 Warning Signs with CSX. The speculation follows reports that Union Pacific is weighing a bid for Norfolk Southern, its East Coast rival. Norfolk Southern shares rose 2.5% Thursday, while CSX fell 0.3%. Union Pacific dipped 1.2%. If completed, a UNP-NSC merger would significantly expand Union Pacific's rail network, potentially challenging the dominance of BNSF Railway, which Berkshire Hathaway acquired in 2010. Analysts say Warren Buffett (Trades, Portfolio) may respond with a counterweight bid to retain competitive parity in the rail sector. While no official offers have been made, market chatter suggests strategic positioning is underway as the U.S. rail industry braces for potential consolidation. This article first appeared on GuruFocus. 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
Reuters
a day ago
- Business
- Reuters
BNSF hires Goldman, CSX seeks bankers as Union Pacific sparks rail M&A race, sources say
July 21 (Reuters) - BNSF Railway has hired Goldman Sachs (GS.N), opens new tab and CSX Corp (CSX.O), opens new tab is in talks to bring on financial advisers, as rival Union Pacific's interest in acquiring Norfolk Southern sparked a wave of deal preparations that could reshape the U.S. freight rail industry, sources said. The moves by BNSF, owned by Warren Buffett's Berkshire Hathaway (BRKa.N), opens new tab , and Jacksonville-based CSX come after Union Pacific (UNP.N), opens new tab began exploring a potential acquisition of Norfolk Southern (NSC.N), opens new tab, which could create a $200 billion coast-to-coast rail network and mark the most significant consolidation in the sector in decades. Any potential deal is expected to undergo intense regulatory scrutiny and remains far from certain. Goldman and CSX declined to comment. BNSF did not immediately respond to a Reuters request for comment. Shares of Norfolk Southern were up 2.4% in extended trading. Berkshire bought BNSF in 2010, paying $26.5 billion for the 77.4% of the railroad it didn't already own. The last major rail merger occurred in 2023, when Canadian Pacific acquired Kansas City Southern, forming the first network to span Canada, the U.S. and Mexico. That deal followed a failed bid by Canadian National, underscoring how competitive pressures can quickly escalate in the sector. In 2024, Union Pacific led the industry with $24.3 billion in revenue, followed by BNSF, CSX, Canadian National ( opens new tab Norfolk and Canadian Pacific Kansas City ( opens new tab. Talks between Union Pacific and Norfolk Southern are still in early stages, the people said. Any merger would require approval from the Surface Transportation Board, which could take up to two years. CSX would be a better fit for Union Pacific than Norfolk Southern, said David O'Hara, managing director at MKP Advisors. 'With first-mover advantage, Union Pacific will buy whoever in the East wants to make themselves available," O'Hara said. "And whoever is left out in the cold ultimately will get bought by Burlington Northern - that will almost have to happen."
Yahoo
a day ago
- Business
- Yahoo
BNSF hires Goldman, CSX seeks bankers as Union Pacific sparks rail M&A race, sources say
By Sabrina Valle (Reuters) -BNSF Railway has hired Goldman Sachs and CSX Corp is in talks to bring on financial advisers, as rival Union Pacific's interest in acquiring Norfolk Southern sparked a wave of deal preparations that could reshape the U.S. freight rail industry, sources said. The moves by BNSF, owned by Warren Buffett's Berkshire Hathaway, and Jacksonville-based CSX come after Union Pacific began exploring a potential acquisition of Norfolk Southern, which could create a $200 billion coast-to-coast rail network and mark the most significant consolidation in the sector in decades. Any potential deal is expected to undergo intense regulatory scrutiny and remains far from certain. Goldman and CSX declined to comment. BNSF did not immediately respond to a Reuters request for comment. Shares of Norfolk Southern were up 2.4% in extended trading. Berkshire bought BNSF in 2010, paying $26.5 billion for the 77.4% of the railroad it didn't already own. The last major rail merger occurred in 2023, when Canadian Pacific acquired Kansas City Southern, forming the first network to span Canada, the U.S. and Mexico. That deal followed a failed bid by Canadian National, underscoring how competitive pressures can quickly escalate in the sector. In 2024, Union Pacific led the industry with $24.3 billion in revenue, followed by BNSF, CSX, Canadian National Norfolk and Canadian Pacific Kansas City. Talks between Union Pacific and Norfolk Southern are still in early stages, the people said. Any merger would require approval from the Surface Transportation Board, which could take up to two years. CSX would be a better fit for Union Pacific than Norfolk Southern, said David O'Hara, managing director at MKP Advisors. 'With first-mover advantage, Union Pacific will buy whoever in the East wants to make themselves available," O'Hara said. "And whoever is left out in the cold ultimately will get bought by Burlington Northern - that will almost have to happen."
Yahoo
6 days ago
- Automotive
- Yahoo
California EV maker to consolidate with Bollinger Motors in Michigan under new name
Mullen Automotive Inc. is putting all of its chips on Bollinger Motors Inc., consolidating operations with the electric truck startup and moving business functions from the West Coast to metro Detroit. The Brea, Calif.-based parent company of Bollinger is moving commercial vehicle operations to Detroit suberb Oak Park and combining Mullen and Bollinger sales, marketing and service operations, the company announced Tuesday. The company will be renamed Bollinger Innovations and update its NASDAQ ticker symbol by Aug. 15. Sign up for the weekly Automotive News Mobility Report newsletter for the latest developments at the intersection of transportation and technology. Mullen was trading at 11 cents per share on July 15, a precipitous decline from a month ago when a second reverse stock split briefly sent its share value climbing. As part of its consolidation, the company touted cash conservation efforts, including the elimination of 155 jobs since January and a $35 million reduction in operating expenses. 'These essential measures position the Company for growth in a challenging environment while working towards becoming cash flow positive,' Mullen CEO David Michery said in a news release. The CEO hinted at the move last month when he told Automotive News affiliate Crain's Detroit Business that Mullen would close its engineering base in Irvine, Calif., and consolidate it to the company's tech center in Troy, where 40-50 employees would be added. 'I want all engineering, all manufacturing, everything in the state of Michigan,' he said at that time. Crain's Detroit inquired with the company about what its footprint will be in Michigan and California following the consolidation. Bollinger's business has sputtered in recent months. The manufacturer of Class 4 electric trucks was forced into receivership after founder and former CEO Robert Bollinger sued the company, seeking to recoup an $11 million loan. While the company exited receivership, it faces major challenges around demand and governmental EV rollbacks. Send us a letter to the editor Have an opinion about this story? Tell us about it and we may publish it in print. Click here to submit a letter to the editor. Sign in to access your portfolio
Bloomberg
15-07-2025
- Business
- Bloomberg
UniCredit's SRT Boom Will Target €20 Billion of Loans This Year
UniCredit SpA is ramping up the use of significant risk transfers as it frees up more capital, with the bank a key player in a wave of industry consolidation. Milan-based UniCredit is on track to issue SRTs tied to as much as €20 billion ($23 billion) of loans this year, said people with knowledge of the matter, who asked not to be named. That would represent an increase of about 30% compared to the bank's loan portfolios tied to SRT deals last year, they said.
