(NewsNation) — Union Pacific plans to acquire Norfolk Southern in a deal worth $85 billion, the freight railroad giants announced Tuesday.
If approved, the merger would create the nation’s first transcontinental railroad, connecting more than 50,000 miles across 43 states, according to a news release. Union Pacific operates west of the Mississippi River, while Norfolk Southern primarily runs east of it.
Jim Vena, Union Pacific CEO, called the proposal a “transformational” step forward for the nation and “a win for our people.”
“Railroads have been an integral part of building America since the Industrial Revolution, and this transaction is the next step in advancing the industry,” Vena said in a statement.
The merger will require federal approval, which could prove complicated for a deal of this size. The companies hope to complete the merger by early 2027.
Merger proposal follows East Palestine, Ohio, fallout
Tuesday’s announcement comes nearly two and a half years after a Norfolk Southern train derailed in East Palestine, Ohio, spilling hazardous chemicals and leading to lingering health problems for residents.
Earlier this year, Norfolk Southern and East Palestine reached a $22 million settlement that “resolved all claims by the village” stemming from the 2023 derailment.
Linda Murphy, an East Palestine resident, expressed frustration with the settlement, telling NewsNation that “many individuals and families are stuck in the same place” they were when the derailment first happened.
“The village has been receiving millions,” Murphy said. “It is like it has become a separate individual entity — not something made up of its residents.”
Another resident, Jami Wallace, criticized what she called “zero transparency” from the village on the settlement, as well as its failure to mention health insurance or relocation.
The settlement, Wallace said, “goes with the village’s choosing economic recovery over human health.”
NewsNation’s Rich McHugh and Cassie Buchman contributed to this report.
