Union Pacific Exploring Acquisition of Norfolk Southern

Union Pacific, the largest US freight railroad operator, is exploring a potential acquisition of Norfolk Southern to create a $200 billion coast-to-coast rail network, Reuters reported (7-18-25), citing a person familiar with the matter.

The talks are in the early stages, the source said, with no guarantee they will progress or result in a deal. Any merger would be subject to an extensive regulatory review. Both companies declined to comment.

A merger between Union Pacific and Norfolk Southern would create the first modern West-to-East single-line freight railroad in the US.

Earlier this year, Union Pacific CEO Jim Vena said a transcontinental merger could benefit customers by eliminating the need for carrier interchanges in Chicago—a longstanding congestion point—and by reducing costly delays for shippers. However, critics argue that such consolidation could reduce competition, raising concerns among regulators.

Reuters noted that any deal uniting two of North America’s six largest freight railroads would likely face intense regulatory scrutiny. Major shippers in industries such as steel, chemicals, and grain are expected to push back against further consolidation in a sector that has shrunk from over 100 Class I railroads in the 1950s to just six today.