AP's Josh Funk reported that Union Pacific and Norfolk Southern are discussing a merger that would create North America's largest railroad, connecting the East and West Coasts, according to sources familiar with the matter.
The talks, which began in early 2025, would combine the largest and smallest of the country's six major freight railroads. Both companies declined to comment.
Industry experts debate whether the Surface Transportation Board would approve such a merger, given the higher regulatory bar set in 2001 following previous problematic rail consolidations.
Union Pacific CEO Jim Vena has previously highlighted potential benefits, including streamlined deliveries and simplified shipping processes. However, some shippers have expressed concerns about reduced competition.
The proposed merger faces significant regulatory, political, and stakeholder challenges. Analysts warn of potential management distractions and lengthy review processes.
