Union Pacific - Norfolk Southern merger talks

[muktown128]

Now BNSF is looking to get into the M&A action…

https://www.msn.com/en-us/money/companies/bnsf-railway-taps-goldman-sachs-for-railroad-acquisition-sources-say/ar-AA1J1wnI?ocid=emmx-mmx-feeds&cvid=a7932112cd5a4c0491cd42d78a773977

[muktown128]

Apparently Berkshire Hathaway owned BNSF is not exploring a takeover of a rival railroad.

https://stocks.apple.com/AFjCQ2xnIS5OLpw9k1a8deA

[Howard1975]

I don't think this country needs another mega merger with the railroads.  There is already little competition, this merger would create less even less competition.  We only have a handful of class 1 railroads anymore. 

Perhaps it will be good for the largest share holders, but otherwise, I don't believe it's good for the economy or the competition. 

[muktown128]

A more recent article about the UP-NS merger talks…

https://www.msn.com/en-us/money/companies/union-pacific-now-the-subject-of-merger-talks-reports-second-quarter-profit-of-1-8-billion/ar-AA1Jd7pP?ocid=emmx-mmx-feeds&cvid=0b611b37d9b541848257f426ba921174

[muktown128]

Link to the latest article about UP-NS merger showing up in my news feed.

https://stocks.apple.com/AzMv30GQARZWLFdAosb5n4w

[mu26aeh]

It's a done deal as of 730am this morning

[Frank Amato]

$85 billion acquisition!

https://www.nytimes.com/2025/07/29/business/union-pacific-norfolk-southern-merger.html

[muktown128]

Link to another article

https://www.msn.com/en-us/money/companies/union-pacific-norfolk-southern-merge-creating-first-us-transcontinental-railroad/ar-AA1JvJBn?ocid=emmx-mmx-feeds&cvid=93d7cf471ec94fbda7c33febbe3b3321

Any bets on how soon before BNSF and CSX start talking about a merger?
I wouldn’t be surprised if there have already been some conversations between them.

[C855B]

I am still convinced that BN+CSX won’t work. Not without huge upgrades in and out of currently minor connection points. They’re going to have to strike a deal with UP for bridge routings to achieve any efficiency.

[Chris333]

What I heard:
The new company will be called Union Pacific. UP is buying NS for around $85 billion.

[C855B]

What I heard:
The new company will be called Union Pacific. UP is buying NS for around $85 billion.

Here you go: https://www.nytimes.com/2025/07/29/business/union-pacific-norfolk-southern-merger.html?unlocked_article_code=1.aE8.t4yv.3iC13Fgp1rWL&smid=url-share

[Jbub]

Looking at the map in the article it looks like North Dakota, South Dakota, New Hampshire, Vermont, Maine, Massachusetts, Connecticut, and Rhode Island will be the only states not directly served by the Borg....Union Pacific.

[muktown128]

Some smoke for the BNSF + CSX merger?

https://www.msn.com/en-us/money/topstocks/berkshire-hathaway-deal-for-csx-looks-more-likely-after-blockbuster-norfolk-southern-union-pacific-railroad-merger/ar-AA1Jw7ry?ocid=emmx-mmx-feeds&cvid=1e1b7572d7464d5ba4c686bbda61c672

There are 2 reasons why I think this will happen if UP takes over NS.
1.  I don’t believe either BNSF or CSX would be able to compete successfully against a real UP transcon.
2.  Berkshire Hathaway is sitting on a ton of cash.

Both points were mentioned in the article, but neither are really new news.

[kscessandriver]

I think the big win the UPNS deal may end up being able to entirely by-pass Chicago with LA-NYC traffic. Without an interchange. I'm sure that's going to reduce the transit time significantly. If it gets approved, I'd like to see UPNS have to give up rights to operate local service to any willing participant on their lines, for a set price, no matter who it is. Class 1's only care about unit train volumes, someone has to focus on the real customers who get small car load volumes.

[C855B]

2.  Berkshire Hathaway is sitting on a ton of cash.

That's not going to drive it. Mr. Buffett and Co. invest for value. If they see value in absorbing CSX, they see something I don't.

I think the big win the UPNS deal may end up being able to entirely by-pass Chicago with LA-NYC traffic.

Right. Again we thump the connections problem. The four constituent roads already overwhelm Chicago, but UP+NS has heavy infrastructure via STL, as you said.

I tend to think the regulators are going to OK UP+NS, but with concessions on the CSX side of the country.