Union Pacific and Norfolk Southern reach $85 billion merger deal - Trains For everyone here in the US, this is among the biggest railroad news in the last decade. Shortly after Canadian Pacific and Kansas City Southern successfully merged to create CPKC, Union Pacific and Norfolk Southern have announced an $85 billion deal to create the very first transcontinental railroad in our nation's history. 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. Note that NS shares were down over $9 after the announcement, so the Wall Street boys aren't happy. From an investor view, it does have to be seen for it's long term value, not as a Conrail split cash bonanza. The merged company will remain Union Pacific, meaning NS will now be the most recent fallen flag (if you can really say that for NS), KCS being the most recent one.
