Union Pacific shareholders approved an $85 billion merger with Norfolk Southern. Nearly all of the votes cast by shareholders (99.5%) approved the deal.
“We appreciate our shareholders’ support in reaching this important milestone on our path to building America’s first coast-to-coast railroad,” said Union Pacific CEO Jim Vena. “Our shareholders see the value and understand this merger will unlock new opportunities to enhance service, growth and innovation. We look forward to filing our application with the Surface Transportation Board (STB) and detailing how the transaction will provide seamless, single-line service across the country to improve transit times, safely increase reliability and strengthen the competitiveness of U.S rail.”
In July, Union Pacific and Norfolk Southern announced an effort to create “America’s first transcontinental railroad” from coast to coast.
The companies will “seamlessly connect over 50,000 route miles across 43 states from the East Coast to the West Coast, linking approximately 100 ports and nearly every corner of North America,” a press release explained. The effort will “transform” the U.S. supply chain, the companies said, as well as “unleash the industrial strength of American manufacturing, and create new sources of economic growth and workforce opportunity that preserves union jobs.”
Under the agreement, Union Pacific would acquire Norfolk Southern in a “stock and cash transaction,” valuing Norfolk Southern at $320 per share and representing a 25% premium to Norfolk Southern’s 30-trading-day volume. “The value per share implies an enterprise value of $85 billion for Norfolk Southern, resulting in the creation of a combined enterprise of over $250 billion,” the companies explained.
