Union Pacific (UNP) and Norfolk Southern (NSC) confirmed on July 24, 2025, they are in "advanced discussions" regarding a potential business combination, a development that could create a transcontinental rail network. This news has intensified speculation about further consolidation within the U.S. freight rail industry.
Amidst these developments, CSX CEO Joe Hinrichs publicly stated his openness to potential merger activity for CSX. This declaration positions CSX as a key player in the evolving M&A landscape, with analysts speculating on potential suitors such as Warren Buffett’s Berkshire Hathaway (BNSF) or one of the major Canadian railroads.
TD Cowen upgraded CSX to a Buy rating from Hold, raising its price target to $39 from $37, based on expectations of increased takeover odds for CSX. The prospect of a shrinking number of Class I railroads from four to two, should a UNP-NSC deal proceed and prompt a BNSF-CSX combination, is seen as a significant catalyst for the sector.
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