Trump Supports Union Pacific, Norfolk Southern Deal
Surface Transportation Board Is Weighing Proposed Merger
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President Donald Trump expressed support for Union Pacific Corp.’s proposed $72 billion acquisition of rival Norfolk Southern Corp., which is seeking regulatory approval.
“Union Pacific is a great railroad, and they want to add a railroad that had a mistake at a place very close to my heart,” Trump told reporters in the Oval Office on Sept. 19, appearing to refer to the derailment of a Norfolk Southern freight train in East Palestine, Ohio, in 2023, an accident that spilled toxic chemicals and sickened residents.
“Well, they’re trying to buy that railroad that had the problem. And it sounds good to me, to be honest with you, sounds good to me,” he added.
Trump went on to praise the head of Union Pacific, saying he was a “big fan of the head of the railroad.”
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The proposed merger, which would create a massive single railroad company controlling shipments across the continental U.S., is currently being weighed by the Surface Transportation Board, the rail industry’s economic regulator. On an enterprise basis, the agreement values the company at about $85 billion.
RELATED: Union Pacific-Norfolk Southern Merger Could Start Rail Trend
Union Pacific CEO Jim Vena discussed the merger with Trump and senior administration officials earlier this month, highlighting how the company is engaging at the highest levels of the government as it seeks regulatory approval.
If allowed to proceed, it would create the country’s first continuous transcontinental railroad by connecting Union Pacific’s network in Western states with Norfolk Southern’s tracks along the East Coast.
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U.S. rules require rail mergers to show that a deal would serve the public interest and enhance competition, a step beyond merger requirements applied to other industries. The companies aim to complete the deal by early 2027.
Commerce Secretary Howard Lutnick in August offered a hopeful sign the deal could proceed when he said he’d be open to consolidation in the rail industry if it improved efficiency.
