Union Pacific (UNP), the largest freight railroad in the U.S., is reportedly close to finalizing a deal to acquire Norfolk Southern (NSC), with an agreement potentially coming as early as next week, according to Bloomberg News.
If completed, the $200 billion merger would create the first coast-to-coast freight rail network in the modern U.S., combining Union Pacific’s vast western routes with Norfolk Southern’s 19,500-mile network across 22 eastern states.
This would mark the largest buyout in the rail industry’s history and could trigger further consolidation among remaining rail giants. The deal comes as a surprise to many industry watchers, given the current duopoly structure of U.S. freight rail, which splits the country into East and West operators.
Analysts suggest the Trump administration’s relaxed stance on antitrust issues has paved the way for such megamergers, with executive orders aimed at reducing regulatory barriers.
Union Pacific, valued at $138 billion, has faced headwinds from declining coal and auto shipments. Norfolk Southern, worth about $63 billion, is recovering from leadership turmoil and a costly $1.4 billion train derailment.
If approved, the merger could reshape the U.S. freight landscape, potentially improving efficiency and competition in the long term.