Union Pacific shareholders voted 99.5% in favor of the $85 billion merger with Norfolk Southern, a decision that represented nearly 80% of the company’s outstanding shares. Norfolk Southern shareholders also approved the transaction with a vote of almost 99%, giving the deal a strong mandate from both sides.
The merger will combine UP’s western network with NS’s eastern routes, creating the first coast‑to‑coast rail network in the United States. Management estimates that the combined company will generate approximately $2.75 billion in annualized synergies, driven by cost savings, revenue enhancements, and improved operational efficiency.
The approval moves the transaction closer to completion, but the deal remains subject to review and approval by the Surface Transportation Board (STB). The STB will evaluate the merger’s impact on competition, rates, and agricultural producers, and is expected to issue a decision by early 2027. The parties have indicated that they will file the required application promptly and address any conditions the regulator may impose.
Union Pacific CEO Jim Vena said the merger “will unlock new opportunities to enhance service, growth and innovation” and that it will “enable rail to deliver goods more quickly.” Norfolk Southern President and CEO Mark George added that the deal will “preserve union jobs, improve safety, and make rail more competitive with highways.” Both executives emphasized that the combined network will reduce transit times by 24–48 hours for about one million shipments annually and shift freight currently moving by truck onto rail.
The merger is part of a broader trend of consolidation in the U.S. rail industry, which has seen the number of Class I railroads shrink to four that control nearly 90% of freight traffic. While the deal promises significant efficiencies, competitors such as BNSF and some chemical manufacturers have raised concerns that the merger could weaken competition and lead to higher rates. The parties have committed to preserving union jobs and have reached an agreement with the National Conference of Firemen and Oilers to protect workers.
If approved, the combined company will be better positioned to compete against trucking, improve service reliability, and unlock growth in long‑haul intermodal freight. The merger will also provide a single‑line service across the country, offering customers a more attractive shipping alternative and strengthening the competitiveness of U.S. manufacturing.
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