Union Pacific Corp. will acquire Norfolk Southern Corp. in a US$85 billion deal that would establish the nation's first transcontinental freight railroad, to be named Union Pacific Transcontinental Railroad. The companies aim to finalize the merger by early 2027, pending regulatory approvals.

On July 29, Union Pacific said it will acquire Norfolk Southern in a stock-and-cash transaction valuing Norfolk Southern at approximately US$320 per share. Under the agreement, Norfolk Southern shareholders will receive one Union Pacific share and US$88.82 in cash for each share they own. Union Pacific will issue roughly 225 million shares to Norfolk Southern investors, who will hold a 27% stake in the combined company, which is valued at more than US$250 billion.

The combination that will create America's first transcontinental railroad will connect over 50,000 route miles across 43 states from the East Coast to the West Coast, linking approximately 100 ports and nearly every corner of North America.

Union Pacific said this combination will, among others, transform the U.S. supply chain.

"The combined company will deliver faster, more comprehensive freight service to U.S. shippers by eliminating interchange delays, opening new routes, expanding intermodal services, and reducing distance and transit time on key rail corridors," the announcement said, describing the Union Pacific Transcontinental Railroad as a "more truck-competitive solution."

It added that currently, Union Pacific and Norfolk Southern invest approximately US$5.6 billion annually in infrastructure, innovation, and network expansion.

The companies first announced that they were discussing a possible merger on July 24, 2025 — but clarifying then that although Union Pacific and Norfolk Southern are "engaged in advanced discussions regarding a potential business combination," there can be no assurances as to whether an agreement for a transaction will be reached or as to the terms of any such transaction. 

Meanwhile, Union Pacific and Norfolk Southern noted that they expect to file their application with the Surface Transportation Board (STB) within six months.

Jim Vena, Union Pacific CEO, will lead the combined company as chief executive officer and has committed his intent to remain at Union Pacific for at least the next 5 years.

At the closing of the deal, three Norfolk Southern Directors, including Mark George, CEO of Norfolk Southern, and Richard Anderson, Norfolk Southern chair, are expected to join the Union Pacific Board of Directors after completing the corporate governance process.