Union Pacific to acquire Norfolk in $85-billion US railway deal: All about the mega merger

Union Pacific Corp agreed to acquire Norfolk Southern Corp in a cash-and-stock transaction valued at $85 billion.

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The deal will create a transcontinental rail giant, linking Union Pacific's extensive western US network with Norfolk Southern's East Coast routes. If approved, the deal would be the largest-ever buyout in the industry.

Deal details and valuation Norfolk Southern shareholders will receive one Union Pacific share and $88.82 in cash for each Norfolk share.

Union Pacific will issue about 225 million shares to Norfolk Southern investors, representing 27% stake in the combined company.

The agreement, which the companies aim to close by early 2027, implies a value of $320 a share for Norfolk, or about $72 billion on an equity basis. That would represent a roughly 23% premium to Norfolk Southern's stock before the first reports of a potential deal this month.