Latest news with #railroad
Yahoo
an hour ago
- Business
- Yahoo
Dividend Strength on the Tracks: Why Union Pacific (UNP) is a Buy in August
Union Pacific Corporation (NYSE:UNP) is included among the 10 Best Dividend Stocks to Buy in August. An intermodal container train winding through a rural landscape. Union Pacific Corporation (NYSE:UNP), a railroad holding company, earns its freight revenue from three main segments: bulk, industrial, and premium, each contributing about one-third of the total. Its diverse range of products and efficient cost structure help the company stay resilient even during times of higher tariffs. The company regularly delivers strong operational results and solid returns on invested capital, with a high operating margin that reflects its ability to stay profitable after covering expenses. In one of the recent developments, Union Pacific Corporation (NYSE:UNP) is reportedly nearing an agreement to acquire Norfolk Southern in a potential cash-and-stock transaction, which could be finalized as soon as next week, according to Bloomberg News. The two railroad companies, which together are valued at around $200 billion, have confirmed that their merger discussions are in advanced stages. If the deal goes through, it would combine Union Pacific Corporation (NYSE:UNP)'s western US rail network, based in Omaha, Nebraska, with Norfolk Southern's East Coast operations, headquartered in Atlanta. In addition to its growth strategies, Union Pacific Corporation (NYSE:UNP) is a solid dividend payer. On July 16, the company declared a 3% hike in its quarterly dividend to $1.38 per share. This was the company's 19th consecutive year of dividend hikes, which makes it one of the best dividend stocks. Moreover, UNP has never missed a dividend in 125 years. The stock has a dividend yield of 2.41%, as of July 28. While we acknowledge the potential of UNP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None.
The Independent
a day ago
- Business
- The Independent
Union Pacific announces bid for Norfolk Southern to create transcontinental railroad
Union Pacific is seeking to buy Norfolk Southern in a deal valued at $85 billion in a merger that could trigger the final wave of railroad mergers across the country. The merger would create the first transcontinental railroad in the United States worth more than $200 billion. The railroads said the tie-up would streamline deliveries of raw materials and goods across the country. Any deal would be closely scrutinized by antitrust regulators that have set a very high bar for railroad deals after previous consolidation in the industry led to massive backups and snarled traffic. But if the deal is approved, the two remaining major American railroads — BNSF and CSX — will face tremendous pressure to merge so they can compete. The continent's two other major railroads — Canadian National and CPKC — may also get involved. Union Pacific CEO Jim Vena, who has been championing the potential benefits of a rail merger, said this deal could make it possible for lumber from the Pacific Northwest and plastics produced on the Gulf Coast and steel made in Pittsburgh to all reach their destinations more seamlessly. 'Railroads have been an integral part of building America since the Industrial Revolution, and this transaction is the next step in advancing the industry,' Vena said.
CNN
a day ago
- Business
- CNN
America's first transcontinental freight railroad is planned after a megamerger
FacebookTweetLink Two of the largest US railroads, Union Pacific (UNP) and Norfolk Southern (NS), announced on Tuesday a plan to combine in a $72 billion deal that would create America's first transcontinental freight railroad. This is a developing story. It will be updated.
Yahoo
a day ago
- Business
- Yahoo
UP-Norfolk Southern Merger Would Control Nearly Half of US Rail Container Traffic
A merger for Union Pacific and Norfolk Southern wouldn't just take a step toward creating a transcontinental railroad—it would bring the lion's share of the industry's intermodal container traffic under one roof. According to data from the Surface Transportation Board's (STB) Rail Service Metrics, 46 percent of intermodal containers shipped on a Class I U.S. railroad in 2024 rode on a Union Pacific or Norfolk Southern railroad car. More from Sourcing Journal CK Hutchison Seeks 'Major' Chinese Investor in $23 Billion Port Sale As Union Pacific and Norfolk Southern Confirm Merger Talks, CSX Won't Rule Out M&A 'Unacceptable': BGMEA Blasts Bangladesh Container Handling Fee Hike After the railroads already confirmed Thursday that they were in 'advanced discussions' about a potential merger, Bloomberg reported on Saturday that a tentative agreement between them could take place as soon as this week. The combination of Union Pacific and Norfolk Southern would usurp the current market share leader, BNSF. That railroad had a 30-percent stranglehold on containers across all rail carloads in 2024. While BNSF had 5.07 million carloads carrying containers last year, Norfolk Southern filled 3.94 million, while Union Pacific had 3.75 million. BNSF would be falling behind on both container market share, and overall carload market share (27 percent for BNSF, 43 percent for the potential merging companies). The surfacing of the UP-NS unification talks and the fight for market share has put BNSF in a spot where its own West-East deal may make the most sense for the company. In the wake of the initial reports of the merger, another report came out tying BNSF to a possible takeover of another railroad, with the company supposedly partnering with Goldman Sachs to prepare for a deal. While Warren Buffett, the chairman of BNSF parent Berkshire Hathaway, shot down the Goldman speculation, that hasn't quelled chatter that CSX may be in the railroad's crosshairs as an acquisition target. CSX carried 2.8 million carloads with containers in them, or nearly 17 percent of total market share in 2024. Combined with BNSF's total, a potential merger would outperform the UP-NS total container market share by a percentage point, at 47 percent. Across all metrics, BNSF and CSX would surpass Union Pacific and Norfolk Southern for total market share across all commodity types, at 44 percent of all carloads. The Union Pacific-Norfolk Southern fusion would lead the way in other major commodities including chemicals (49 percent), metals (54 percent) and motor vehicles and equipment (49 percent). A day after both railroads confirmed the merger talks, the STB launched a merger resources page on its website. Under federal law, rail mergers involving Class I railroads must be formally submitted to the STB for review. The STB's information includes a sample timeline that depicts how a Class I railroad merger application might flow through the regulatory review process. However, as it currently stands, even a tentative agreement between Union Pacific and Norfolk Southern would require more than a year for any final decision was approved. Such a review starts when the railroads notify the board of their intent to merge, with applications filing their application between three and six months after that notice. When accounting for the application's acceptance or rejection, as well as comments on the application decision, recorded filings from interested parties and a possible hearing, a final board decision would be made over a 19- to 22-month period. After BNSF and Canadian National Railway called off their own merger in 2000, rail deals throughout the U.S. stalled out. After the companies axed the plans, the STB adopted the tougher consolidation rules, noting that future M&As would be required to enhance competition and serve the public interest. Only one major merger has materialized in the time since. Canadian Pacific's $31 billion acquisition of Kansas City Southern that formed Canadian Pacific Kansas City (CPKC) was finalized in March 2023, two years after the companies announced plans to merge. This deal was largely able to go through the STB's regulatory process due to the small size of KCS, with the merging companies remaining the smallest of the Class I North American railroads. The combination also had the fewest overlapping routes compared to if KCS merged with another large railroad. With the Trump administration and appointed STB chair Patrick Fuchs holding meetings focused on updating the agency's framework and reducing regulatory barriers, it remains a possibility that the timeline for a regulatory review could shorten. As more questions come into play regarding the possible merger, Norfolk Southern is set to report its second quarter earnings on Tuesday morning. The company recently had a major change at the top in June, indicating another shift in direction less than a year after former CEO Alan Shaw was ousted. Last month, the railroad's board of directors appointing former Delta Air Lines CEO and executive chairman Richard Anderson as the railroad's new independent board chair. 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, Norfolk Southern seek deal to create $200 billion railroad that could trigger a final wave of rail mergers in US} (CORRECTS: A previous APNewsAlert erroneously reported the merger would create $200 railroad.
OMAHA, Neb. (AP) — { Union Pacific, Norfolk Southern seek deal to create $200 billion railroad that could trigger a final wave of rail mergers in US} (CORRECTS: A previous APNewsAlert erroneously reported the merger would create $200 railroad. 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
