UP-NS Agree to $85 Billion Merger

[AdvancedApproach]

Well it’s official now.

Union Pacific and Norfolk Southern reach $85 billion merger deal - Trains

Union Pacific and Norfolk Southern today announced an $85 billion deal to tie their networks together and create the first U.S. transcontinental railroad. The merged company — which will be called Union Pacific — will transform the U.S. supply chain and economy, strengthen domestic...

www.trains.com

 

[pdkoester]

https://www.msn.com/en-us/money/com...irst-coast-to-coast-rail-operator/ar-AA1Jv65Y

https://www.up-nstranscontinental.com/

 

[AdvancedApproach]

I hope the merger gets denied.

 

[crazytrain]

Well, put UP's wings on the NS's horse, you get a Pegasus..... and throw a horn on top and you get....

 

[AFdude06]

I hope the merger gets denied.

Seems unlikely, although NS shares are down $9 after the announcement, so the Wall Street boys dont seem too happy.
I'm active on the Trains.com forums and here's a post from one user:

"Formal merger announcement released in the Q2 2025 financial results email from NS:

Union Pacific Transaction and Conference Call

In a separate release issued today, Norfolk Southern and Union Pacific announced an agreement to combine in a stock and cash transaction to create America’s first transcontinental railroad. Under the terms of the agreement, Norfolk Southern shareholders will receive 1.0 Union Pacific common share and $88.82 in cash for each share of Norfolk Southern common stock. The implied value of $320 per share represents an implied total enterprise value for Norfolk Southern of $85 billion based on Union Pacific’s closing stock price on July 16, 2025."

Not a great premium, however UP will now have the ability to argue that a BNSF-CSX combo would be an even larger and more formidable competitor. From the ivestors view, we should see this for its long term value, not a Conrail split cash bonanza. No matter what when all is said and done, we are going to have the very first true transcontinental railroad in our nation's history.

 

[norfolksouthern37]

*First that is owned by one RR.

This is not really an accomplishment as the rail system already exists. Just comes off as hype for... what purpose? It doesn't matter one bit if throughput doesn't improve.

 

[AFdude06]

*First that is owned by one RR.

This is not really an accomplishment as the rail system already exists. Just comes off as hype for... what purpose? It doesn't matter one bit if throughput doesn't improve.

You are right, I should have clarified... UP will be the very first company to own and operate the very first transcontinental. No new infrastructure would be built for this to happen.

 

[pdkoester]

I hope the merger gets denied.

Uh, it is happening.
Yes, Union Pacific and Norfolk Southern have agreed to merge in a landmark $85 billion deal.
Headquarters: The new company will be based in Omaha, Nebraska, while Atlanta will remain a key hub for technology and innovation.
The companies plan to submit their merger application to the Surface Transportation Board (STB) within six months, aiming to finalize the deal by early 2027, sorry to disappoint.

 

[marmalade32]

What do we think the up ns heritage unit will look like? They could take a rebuilt SD40-N numbered 2027 and paint it ns livery

 

[AdvancedApproach]

Uh, it is happening.
Yes, Union Pacific and Norfolk Southern have agreed to merge in a landmark $85 billion deal.
Headquarters: The new company will be based in Omaha, Nebraska, while Atlanta will remain a key hub for technology and innovation.
The companies plan to submit their merger application to the Surface Transportation Board (STB) within six months, aiming to finalize the deal by early 2027, sorry to disappoint.

It still has to be approved by the STB. I don’t see how this will improve service. The PSR model will still cause railroads to dump business their shareholders don’t deem to be high profit margins onto trucks. There will be even more cuts to labor, fewer resources into modernizing their infrastructure which will compromise safety. Now I remember UP and others constantly ridiculing the SP for their haphazard management and poor service amongst other things and rightful so. Only problem is the UP and railroads in America are guilty of those exact practices SP was crucified for.

 

[Forester1]

That's what Harvard MBAs have gotten us. Short term profit and forget anything else.

 

[skittlekicks]

Well we all need to thank the deregulation of the train industry back in 1982. That's when all consolidation began to go nuts.

Not only that but a lot of small routes died, businesses died, crews were reduced to a couple of people. Oh and it's only gonna get worse.

From what I heard from a former conductor (SpurGaming) stated these companies want to get down to one person and run remote control, and continue building two mile long consists. Yeah nothing bad can ever happen.

These companies can't even maintain their own tracks to prevent these derailments, but hey, let's merge so we can wreck things on a grander scale. Oh and make sure that the money flows to the brass with no class and shareholders. Mergers suck period.

 

[blueodessey]

I hope the merger gets denied.

So do I, have not liked how UP does business or manages it's employees. Don't know anything about NS, but I can tell, there is lot of Customers in California that did not get good service over the decades. Ever wonder why we have so many trucks on our Freeways and Cities. Because certain Rail companies wanted simple Sea Enter-model service from point A to B.

Lots of Industrial Leads and Branch Lines cut.

Plus the Southern Pacific was taken over by Corporate Raider and sold off to UP.

In addition 3 mile Trains don't work well, when they don't have 3 mile passing Sidings.

 

[blueodessey]

It still has to be approved by the STB. I don’t see how this will improve service. The PSR model will still cause railroads to dump business their shareholders don’t deem to be high profit margins onto trucks. There will be even more cuts to labor, fewer resources into modernizing their infrastructure which will compromise safety. Now I remember UP and others constantly ridiculing the SP for their haphazard management and poor service amongst other things and rightful so. Only problem is the UP and railroads in America are guilty of those exact practices SP was crucified for.

Spot on Chief. Customer is King rarely exists, and then there is that terrible thing called Greed and Easy money.

And this also the reason so many Short lines have come online.

As well, we are short Truck Drivers in USA too.

Moving large volumes of Bulk items, is best done by Railroad, simple Physics when you think about Rail Cars only contact the width of a dime on Rails.

 

[Forester1]

these companies want to get down to one person and run remote control, and continue building two mile long consists.

Exactly right. I have a nephew who is an engineer with UP and have heard this many times. And those long trains do tend to break couplers and even engines sometimes. Ridiculous. That being said, I would like to see even more trains taking truck trailers off the freeway!

 

[JCitron]

From what I've heard, NS isn't too kind to its employees either. To make matters worse, once they got into that PSR kick, employees and customers got the short end of the stick.

With mergers like this comes lots of blood shed as branch lines and main lines are lopped off as routes are consolidated. Layoffs will be a big thing as management consolidates positions and senior officials start infighting to remain in power.

In the olden days, railroads were run by people who knew how to run railroads. Now, just like many other industries, including healthcare, the people in charge have absolutely no understanding or clue on how the industry operates, and work and live by spreadsheet only. These people work for stockholders and investment houses and not for the good of the company. They aren't employees who worked their way up the ranks, or people who came in from like industries. The CEO is planted by a board of directors to do their bidding to ensure that their investment maximizes their portfolios.

When all is said and done in the end, it's the customers who will lose out because these people who live by spreadsheets and stockholder's wishes, don't care about customers and only about how large their bonuses will be after they've slashed the company and sold off the assets in order to meet stockholder expectations.

 

[pdkoester]

 

[norfolksouthern37]

please no

 

[pdkoester]

please no

Too ugly? Too soon? Probably both... that isn't a serious attempt at what may be. I just was goofing with an AI image generation.

 

[skittlekicks]

From what I've heard, NS isn't too kind to its employees either. To make matters worse, once they got into that PSR kick, employees and customers got the short end of the stick.

With mergers like this comes lots of blood shed as branch lines and main lines are lopped off as routes are consolidated. Layoffs will be a big thing as management consolidates positions and senior officials start infighting to remain in power.

In the olden days, railroads were run by people who knew how to run railroads. Now, just like many other industries, including healthcare, the people in charge have absolutely no understanding or clue on how the industry operates, and work and live by spreadsheet only. These people work for stockholders and investment houses and not for the good of the company. They aren't employees who worked their way up the ranks, or people who came in from like industries. The CEO is planted by a board of directors to do their bidding to ensure that their investment maximizes their portfolios.

When all is said and done in the end, it's the customers who will lose out because these people who live by spreadsheets and stockholder's wishes, don't care about customers and only about how large their bonuses will be after they've slashed the company and sold off the assets in order to meet stockholder expectations.

Absolutely correct, and isn't it funny that the brass never seems to get the memo? Them good 'ol train boys of the past knew their role, they understood logistics, and they literally knew how to run a railroad. Sure profit was important as it always in in business; however, not at the expense of their clientele and consumers.

The train world always fascinated me since I was a kid. I loved seeing Soo Line, Burlington Northern, and Santa Fe's traveling over the crossings in the late 70s and the 80s. Going into St. Paul as a kid to visit family took us past the Pig's Eye rail yard that's nestled under the bluffs, and to a little kid it was a life size model railroad (and oh how I wanted to play big boy trains). Today it's lost so much of the magic (and those of you older than me truly saw that magic in your youths) and this merger if the Federal Government approves it (you know they will because like all consolidations they NEVER see consequences) will ruin the magic once again.