Union Pacific and Norfolk Southern confirm negotiations to create a coastal railway – Chicago Tribune
Mate dust there
Union Pacific and Norfolk Southern confirmed Thursday that they were in merger conversations that would create a single rail that would go from one ocean to the other in the United States.
The Associated Press reported last week that companies discussed a union, but none confirmed it until Thursday morning.
The possible merger would combine the largest and the minor of the country’s six main railways.
There is a large debate on the question of whether such a merger would be approved by American regulators, who have established a high level of consolidation in this crucial industry.
This is largely due to consolidating industry almost 30 years involving Union Pacific. Union Pacific merged with the southern Pacific in 1996 and the Unión led to an extended period of tangled rail traffic. Three years later, Conrail was divided by Norfolk Southern and CSX, which led to more delays in the rails in the east.
However, only two years ago, the surface transport committee approved the first large rail fusion in more than two decades. In this agreement, which was supported by large carriers, the Canadian Pacific acquired Kansas City Southern for $ 31,000 million to create the CPKC railway.
Despite this, part of the reasoning behind the approval was that it involved two of the smallest main railways, and Kansas City Southern was the only operator with direct lines to Mexico. The regulators estimated that the combined railroad would benefit trade throughout North America.
The agreement left only six large -loaded railways, which could become a problem when regulators wonder if they approve an agreement between Norfolk Southern and Union Pacific.
To be approved, any important rail fusion must demonstrate that competition will improve and serve the public interest under the rules established in 2001, according to this pair of mergers.
Also Thursday, Union Pacific said that its tight gain increased to $ 1.8 billion in the second quarter.
Omaha’s company’s share profits, Nebraska increased to $ 3.03, exceeding Wall Street expectations and easily exceeding $ 2.71 per share that said during the same period last year. Analysts were gaining a gain of $ 2.91 per share for the last quarter.
Operating profit increased by 2% against $ 6,200 million, said the company.
The Pacific Union actions fell 2% in the opening bell Thursday, at $ 226.70 each. They fell at around $ 208 in early April, their level below 2025, when President Donald Trump implemented generalized rates that threatened to disrupt world trade.
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This story was translated from English by an AP publisher with the help of a generative artificial intelligence tool.
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