Union Pacific and Norfolk Southern Revise Merger Terms in Historic $85 Billion Deal
Union Pacific Corp. and Norfolk Southern Corp. have submitted a revised merger application to federal regulators. The proposed merger, valued at an estimated $85 billion, would be the largest railroad merger in U.S. history.
The companies filed their new commitments with the Surface Transportation Board (STB) on Monday, July 27, 2026. These commitments include stronger customer protections, an enhanced oversight process, and provisions for temporary alternate rail service if service levels decline.
Additionally, the companies have pledged to expand “committed gateway pricing”. This expansion will double the number of eligible shipments and extend benefits to bulk unit train shippers.
The proposed merger, first announced in July 2025, would result in the creation of the Union Pacific Transcontinental Railroad. This would be the first single-line railroad connecting the Atlantic and Pacific coasts.
However, the merger has faced significant regulatory scrutiny. The original application was rejected as incomplete in January 2026, and the STB held proceedings in abeyance while demanding supplemental information by July 27. Rivals including Canadian National and BNSF have voiced strong opposition, calling the application full of “unsupported assumptions”. The outcome of this revised filing could reshape America’s freight infrastructure for generations.
Source: Bloomberg – Union Pacific, Norfolk Revise Application to Help Clinch Merger