The largest merger in the U.S. railway industry is born? It is rumored that The Pacific (UNP.US) is considering acquiring Norfolk Southern (NSC.US)

According to informed sources, The Pacific company (UNP.US) is considering acquiring Norfolk Southern Corporation (NSC.US), and if the deal goes through, it will be the largest railway industry merger and acquisition in U.S. history. These negotiations are still in the early stages, and it is currently uncertain whether the two companies can reach an agreement. This deal would merge the two largest railway companies in the U.S., with the merged company's market value approaching $200 billion. At the time of writing, Norfolk Southern Corporation's stock (valued at around $61 billion) rose 4.31% after hours. The Pacific company's stock (valued at around $136 billion) rose 0.5% after hours. The acquisition of Norfolk Southern Corporation will completely change the North American railway market, as it will unite The Pacific company's railway network in the western U.S. with Norfolk Southern's routes on the East Coast, creating an integrated railway network. This will also bring intense competition pressure to competitors CSX Corporation (CSX.US) and BNSF, owned by Berkshire Hathaway (BRK.A.US). After years of industry consolidation, any merger of railway companies is likely to undergo strict scrutiny by regulatory agencies. Major mergers in the North American railway industry are relatively rare, in part due to the difficulty of obtaining approval from regulatory authorities. In 2023, The Pacific Railway completed the acquisition of Kansas City Southern Railway, a deal worth about $31 billion. Speculation about large-scale mergers in the North American railway industry continues to grow, as people believe that during Trump's presidency, the government may be more inclined to push for industry consolidation. Jim Vena, CEO of The Pacific company, said at an industry conference in June that he hopes to engage in large-scale merger deals, but he also acknowledged the many complex obstacles in politics and regulation. He said, "This is not easy, and the situation is complex. Do I believe that mergers are beneficial for the country? Absolutely, yes." At the same conference, Jason Zampi, CFO of Norfolk Southern Corporation, also expressed support for the merger of the two transcontinental railway companies. Zampi said, "It seems to bring many benefits. The regulatory environment and the political environment are two issues we must address."