Union Pacific and Norfolk Southern are making their case for the largest railroad merger in US history, defending their proposed $85 billion combination before the Surface Transportation Board as opposition mounts from labor unions and rival carriers.
If approved, the deal would create the first coast-to-coast freight railroad in the United States, with a combined enterprise value exceeding $250 billion.
What the deal looks like
Under the terms announced on July 29, 2025, Norfolk Southern shareholders would receive 1.0 Union Pacific share plus $88.82 in cash for each share they hold.
The companies are projecting approximately $2.75 billion in annualized synergies from the merger. On top of that, they estimate shipper savings of around $3.5 billion per year.
