Shareholders of Union Pacific, Norfolk Southern support $85 billion rail merger

Shareholders of Union Pacific and Norfolk Southern overwhelmingly approved an $85 billion merger that aims to create the first U.S. coast-to-coast rail network. About 99% of shareholders from both companies voted in favor.

However, the deal isn’t final yet. The U.S. Surface Transportation Board (STB) must still conduct a full review and authorize the merger, a process expected to take considerable time.

Union Pacific CEO Jim Vena said investors clearly recognize the value of the merger, arguing it will enhance service quality, boost speed of deliveries, and create new growth opportunities. He expects to file the full application within the coming weeks.

The merger is backed by the largest rail union and hundreds of shippers, but chemical manufacturers and rival railroad BNSF warn that reduced competition could lead to higher rates. President Donald Trump expressed support for the plan after meeting with Vena.

If approved, the combined network would stretch over 50,000 miles of track across 43 states, allowing freight to move more efficiently without the delays caused by handoffs between separate rail companies.

Opponents urge a rigorous review, warning that excessive consolidation could harm consumers. Still, both companies’ leaders are confident the pro-business administration will ultimately greenlight the deal.