Union Pacific, Norfolk Southern Launch Regulatory Review for $85 Billion Coast-to-Coast Merger

Union Pacific (NYSE: UNP) and Norfolk Southern (NYSE: NSC) have formally kicked off the U.S. regulatory review process for their proposed $85 billion merger, filing a nearly 7,000-page application with the U.S. Surface Transportation Board (STB) on Friday.

The filing opens a 30-day window during which the STB can request additional information, propose initial remedies, and invite feedback from stakeholders including shippers, labor unions, consumer advocates, and local officials. If approved, the deal would create the nation’s first coast-to-coast freight railroad, reshaping how goods move across the United States.The proposed combination would leave the remaining major U.S. freight railroads competing against a single transcontinental operator. Union Pacific and Norfolk Southern argue the merger would eliminate the long-standing East-West handoff barrier, particularly the congested and delay-prone Chicago interchanges, by offering single-line service across the country.

Union Pacific Chief Executive Officer Jim Vena said he is confident the transaction will secure regulatory approval, arguing that the benefits are clear.“If we stand still, we are going to get left behind,” Vena said. “The benefits of this transaction are undeniable.”

The proposal surprised many analysts when it was announced in July, as large rail mergers were widely viewed as unlikely under prior administrations due to heightened antitrust scrutiny.The merger has received public support from President Donald Trump, who has said that a unified East-West railroad aligns with his broader vision for strengthening U.S. infrastructure. Union Pacific was among the companies that contributed to a White House ballroom project, according to public disclosures, and Trump and Vena discussed the proposal during a meeting at the Oval Office in September.

Despite that backing, the deal faces rigorous review under the STB’s stricter merger framework adopted in 2001, which requires railroads to demonstrate that a merger will enhance competition, not merely preserve it, and deliver clear public-interest benefits.The filing immediately drew strong opposition from competitors in an already concentrated industry. Four Class I freight railroads dominate the U.S. market, with Union Pacific and BNSF controlling much of the West, and Norfolk Southern and CSX operating primarily in the East.

BNSF, owned by Berkshire Hathaway, said the merger would reduce shipper choice and lead to higher rates. BNSF Chief Executive Katie Farmer said the filing does not change the company’s opposition.“The transaction poses a significant threat to the U.S. economy and the American consumer through its long-term competitive harms,” Farmer said. Canadian Pacific Kansas City also raised concerns, warning that the deal could create far-reaching risks for customers and saying it plans to be active in the STB review process.

CSX said it is reviewing the filing and will participate in the regulatory process to ensure it remains well positioned to compete.According to independent rail analyst Anthony Hatch, the outcome of the STB process could influence whether other railroads pursue mergers of their own.“If these railroads get enough market access through the STB process, they may decide they can remain independent, and if they don’t, they risk being outmatched unless they merge,” Hatch said, adding that it is still too early to predict the final outcome.

About Union Pacific

Union Pacific (NYSE: UNP) is one of the largest freight railroad networks in the United States, operating more than 32,000 route miles across 23 western states. Founded in 1862, the company plays a central role in transporting agricultural products, energy resources, industrial goods, and intermodal freight, connecting major ports and markets across the western U.S.

About Norfolk Southern

Norfolk Southern (NYSE: NSC) is a leading freight transportation company operating a rail network of approximately 19,500 route miles across 22 eastern states and the District of Columbia. Headquartered in Atlanta, the company provides rail services for a wide range of industries, including automotive, chemicals, agriculture, and consumer products.