Regulators pause $75 billion rail merger review, requiring additional data and pushing completion to mid-2027.
The Surface Transportation Board paused its review of Norfolk Southern Corporation’s (NSC) $75 billion merger with Union Pacific, directing both firms to submit further information. The delay extends the deal’s expected completion to mid-2027, well beyond initial projections of early 2027.
The merger, announced in July 2024, faced regulatory scrutiny amid broader concerns over consolidation in the rail industry. Union Pacific CEO Jim Vena stated the company does not require federal financial support, despite reports of President Trump’s interest in a $75 billion stake.
Norfolk Southern shares trade at a forward P/E of 23.36, below the broader market’s 30.89. Baird raised its price target on NSC to $315 from $288, maintaining a Neutral rating.