Union Pacific announced Friday that its investors overwhelmingly endorsed the company’s proposed $85 billion acquisition of Norfolk Southern, a move the rail giants claim will forge the nation’s first fully transcontinental railroad network.
At a preliminary shareholder meeting, 99.5% of votes cast favored authorizing new Union Pacific common stock to complete the merger—support representing nearly 80% of all outstanding shares. A final tally will be disclosed in an upcoming filing with the U.S. Securities and Exchange Commission.
Union Pacific CEO Jim Vena praised the vote, calling it a defining step toward building what he described as America’s first coast-to-coast rail system. “Our shareholders see the value and understand this merger will unlock new opportunities to enhance service, growth and innovation,” he said.
$85B Deal Blends Cash, Stock, and a Massive Rail Network
The July-announced transaction values Norfolk Southern shares at roughly $320 and includes a cash-and-stock exchange. Under the terms, Norfolk Southern shareholders will receive one Union Pacific share plus $88.82 in cash for each share they own. Union Pacific expects to issue about 225 million new shares to finalize the transaction.
If regulators sign off, the combined company would command more than 50,000 miles of track in 43 states, creating a coast-spanning network that backers say will unify freight routes and drive efficiency. The deal still hinges on approval from the Surface Transportation Board (STB).
