July 29, 2025 – In a historic move set to transform the U.S. supply chain and economy, Union Pacific and Norfolk Southern announced today their agreement to merge, forming the first true coast-to-coast transcontinental railroad in American history. Valued at over $250 billion, the merger will create a rail network spanning 50,000 miles across 43 states and serving nearly 100 ports.
Under the deal, Union Pacific will acquire Norfolk Southern in a stock and cash transaction that values Norfolk Southern at $85 billion, or $320 per share—a 25% premium over its 30-day trading average. The combined company will be headquartered in Omaha, Nebraska, with Atlanta remaining a strategic operational hub.
“This is a transformational moment for American freight,” said Jim Vena, CEO of Union Pacific, who will lead the newly merged enterprise. “We’re building on Abraham Lincoln’s original vision for a transcontinental railroad—only now, we’re connecting steel from Pittsburgh to California and agriculture from the Midwest to global markets with unprecedented efficiency.”
The merger is projected to generate $2.75 billion in annualized synergies and significant long-term value for shareholders, with the combined company expected to generate approximately $36 billion in annual revenue and $18 billion in EBITDA based on 2024 performance.
Key Benefits of the Merger:
- For Shippers: Faster, more reliable freight movement with fewer interchanges, improved intermodal options, and streamlined logistics nationwide.
- For the Economy: Enhanced competitiveness with Canadian railroads, expanded access to underserved regions, and strengthened international trade via port access.
- For Workers: Commitment to preserving union jobs with expanded opportunities as rail volume grows. All union workers who want to remain employed will have a job with the combined company.
- For Communities: Continued investment in safety, infrastructure, and local initiatives, with over $300 million in community support already committed between the two companies.
- For the Environment: A more truck-competitive rail solution is expected to reduce highway congestion and emissions, supporting a more sustainable U.S. freight ecosystem.
Mark George, CEO of Norfolk Southern, emphasized that this partnership brings together two companies with deep legacies and complementary strengths: “This is not just about combining assets—it’s about igniting a rail renaissance in the U.S. that benefits every stakeholder from port to porch.”
The merger still requires approval from the Surface Transportation Board (STB), which will evaluate it for its competitive and public interest merits. Both boards of directors have unanimously approved the transaction, with closing targeted for early 2027.
