Norfolk Southern Corporation announced that nearly 99% of its shareholders voted in favor of the company’s previously announced merger with Union Pacific during a special meeting held today. The approval marks a significant step toward creating America’s first coast-to-coast transcontinental railroad.
“The merger will preserve union jobs and improve safety while delivering faster, more reliable transit times,” said Mark George, Norfolk Southern’s president and CEO. He added that the combined network will make rail more competitive with highways, offering customers attractive shipping alternatives and boosting economic growth nationwide.
Under the agreement, Norfolk Southern shareholders will receive one Union Pacific common share and $88.82 in cash for each Norfolk Southern share owned. The transaction is expected to close by early 2027, pending regulatory review by the Surface Transportation Board and customary closing conditions.
As the companies move closer to merging, competitors BNSF Railway and Canadian Pacific Kansas City (CPKC) have voiced concerns about the potential impact on competition and intermodal service options.
At the Baird 55th Annual Conference in Chicago, UP indicated it would keep over 300 intermodal lanes open where origins or destinations currently exist on BNSF and NS or UP and CSX if the merger is approved. BNSF President and CEO Katie Farmer welcomed this commitment but warned of past patterns.
“I’m sure the nation’s rail customers are relieved that UP is committing to keep all current intermodal lanes open,” Farmer said. “However, UP has historically raised rates on competing interchange partners after mergers, making those lanes economically uncompetitive.”
CPKC echoed these concerns, referencing UP’s opposition to its own merger with Kansas City Southern. UP had urged the Surface Transportation Board to impose conditions preventing reductions in competitive options at key gateways like Laredo.
UP argued that merged railroads face “enormous post-merger pressure” to divert traffic from interline service to single-line service by raising rates or degrading service quality, limiting shippers’ choices.
