Trump Backs Monumental Rail Merger: Union Pacific’s $85 Billion Bid

In a significant development, Union Pacific Corp CEO Jim Vena held discussions with U.S. President Donald Trump in the Oval Office, seeking support for the company's ambitious $85 billion takeover of Norfolk Southern Corp. The merger, which aims to create the largest single-line rail network in the United States, marks a pivotal moment in the industry.

The proposed merger, unveiled in July, stunned the market, which is dominated by four major rail operators. Under the Biden administration's rigorous antitrust policy, such a consolidation might have been untenable. Some industry insiders believe Trump's endorsement could expedite the lengthy approval process despite the anticipated opposition from competitors and shippers wary of decreased competition.

Union Pacific, which dominates the western U.S., along with Norfolk Southern's eastern stronghold, would forge a transcontinental giant. During meetings, Trump and Vena explored how this move benefits U.S. competition and sustains union jobs. Meanwhile, rivals BNSF Railway and CSX Corp are assessing strategic moves in light of the merger and potential regulatory shifts under the new administration's favored stance.