Union Pacific announced plans to acquire Norfolk Southern in an $85 billion deal that would create the nation’s first coast-to-coast freight rail operator, fundamentally changing how goods—from grains to automobiles—are transported across the U.S. If approved, the merger would combine Union Pacific’s dominance in the western two-thirds of the country with Norfolk Southern’s extensive 19,500-mile network across 22 eastern states. This would represent the largest acquisition in the rail industry’s history, uniting the two leading railroads under one transcontinental company.
The deal faces significant regulatory scrutiny and will test the evolving approach to antitrust enforcement under the current administration. The U.S. Surface Transportation Board, which oversees rail mergers, has shifted toward a more industry-friendly stance, emphasizing quicker reviews and post-merger conditions rather than outright blocking. Union Pacific’s proposal will also require backing from labor unions, which traditionally oppose consolidation due to concerns about job losses and service disruptions. The rail industry is currently challenged by fluctuating freight volumes, rising costs, and increasing pressure from shippers, adding complexity to the merger’s approval process. This follows the recent $31 billion merger of Canadian Pacific and Kansas City Southern, which, despite initial regulatory resistance, was ultimately approved and created a single-line rail network spanning Canada, the U.S., and Mexico.