Union Pacific share price rises: Union Pacific and Norfolk Southern are in merger talks, claims report

Union Pacific shares rose about 1 per cent before the bell Thursday, to USD 233.30 each. They had slumped to around USD 208 in early April, their lowest level of 2025, as President Donald Trump rolled out sweeping tariffs that threatened to upend global trade. Shares of all US railroads moved higher as well. This came as Union Pacific reported on Thursday that its adjusted profit grew to USD 1.8 billion in the second quarter as merger rumours to swirl around the nation's largest railroad. The Omaha, Nebraska, per-share earnings rose rose to USD 3.03, beating Wall Street expectations and easily topping the USD 2.71 per-share profit it reported in the same period last year. Analysts were expecting profit of USD 2.91 per share for the recent quarter. Operating revenue grew 2 per cent over last year, to USD 6.2 billion, the company said.

Union Pacific and Norfolk Southern are in merger talks that would create the a railroad in North America that essentially connects the East and West Coasts. Neither company has commented on the negotiations, which began during the first quarter of this year, according to a person familiar with the talks who wasn't authorised to speak publicly about them. It would combine the largest and smallest of the country's six major freight railroads. There is widespread debate over whether such a merger would be approved by US regulators, which have established a high bar for consolidation in the crucial industry, Associated Press reported.

That is largely because of a disastrous deal that involved Union Pacific.


Union Pacific merged with Southern Pacific in 1996 and the tie-up led to an extended period of snarled rail traffic on US rails. Three years later, Conrail was divvied up by Norfolk Southern and CSX, which led to more backups on rails in the East.

However, just two years ago the US Surface Transportation Board did approve a deal that created the CPKC railroad, allowing Canadian Pacific to acquire Kansas City Southern for USD 31 billion.

That merger combined the two smallest major railroads in North America, however, but left only six major freight railroads. It was the first major rail merger approved in more than two decades.

To be approved, any major rail merger must show it will enhance competition and serve the public interest under the 2001 rules. The CPKC merger was not judged under those rules because Kansas City Southern had an exemption from them as the smallest major freight railroad at the time.

FAQs

Q1. When did Union Pacific merge with Southern Pacific?
A1. Union Pacific merged with Southern Pacific in 1996 and the tie-up led to an extended period of snarled rail traffic on US rails. Three years later, Conrail was divvied up by Norfolk Southern and CSX, which led to more backups on rails in the East.

Q2. What do we know about CPKC railroad?
A2. However, just two years ago the US Surface Transportation Board did approve a deal that created the CPKC railroad, allowing Canadian Pacific to acquire Kansas City Southern for USD 31 billion.