Union Pacific and Norfolk Southern Merge to Form First Transcontinental Railroad
Union Pacific and Norfolk Southern have announced a landmark merger, forming America's first transcontinental railroad. The deal is valued at $250 billion, with Norfolk Southern appraised at $85 billion. This merger promises significant synergies and financial growth, driving forward advancements in the rail transport sector.
Union Pacific Corporation is set to merge with Norfolk Southern, creating the first transcontinental railroad in America. The strategic move values Norfolk Southern at an enterprise value of $85 billion, with the merger forming a powerful $250 billion enterprise.
Shareholders of Norfolk Southern will receive one share of Union Pacific and $88.82 in cash per share. Union Pacific's leadership has ensured the transaction is designed to enhance their adjusted earnings per share, especially by the second full year after closure.
Jim Vena will lead this groundbreaking collaboration as CEO. The companies aim to file their application with the Surface Transportation Board within six months, promising to unlock approximately $2.75 billion in annual synergies.
(With inputs from agencies.)
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