Shareholders of Union Pacific, Norfolk Southern support $85 billion rail merger

OMAHA, Neb. (AP) — Shareholders of Union Pacific and Norfolk Southern backed the railroads’ projected $85 cardinal merger to make the nation’s archetypal coast-to-coast obstruction network.

Roughly 99% of some railroads’ shareholders voted to enactment the largest obstruction merger successful past Friday, but the U.S. Surface Transportation Board indispensable inactive o.k. it earlier the woody tin beryllium completed.

Union Pacific CEO Jim Vena said, “Our shareholders spot the worth and recognize this merger volition unlock caller opportunities to heighten service, maturation and innovation."

Vena has said that helium hopes to record the ceremonial merger exertion either successful precocious November oregon aboriginal December, and that volition initiate the lengthy reappraisal process.

The merger has picked up the enactment of the largest obstruction national and hundreds of shippers, but chemic manufacturers and competing railroad BNSF person raised concerns astir whether the merger would wounded contention and pb to higher rates. President Donald Trump said aft gathering with Vena successful the Oval Office that the woody sounds bully to him.

Vena has argued that the merger is large for America due to the fact that it would alteration the railroad to present goods much rapidly and assistance the companies that trust connected its deliveries of earthy materials and finished products.

The projected merger announced this summertime was designed to nexus Union Pacific’s immense obstruction web successful the West with Norfolk’s rails that crisscross the Eastern United States. The combined railroad would see much than 50,000 miles of way successful 43 states with connections to large ports connected some coasts.

The railroads argued that this merger would streamline deliveries of earthy materials and goods nationwide by eliminating delays erstwhile shipments are handed disconnected betwixt railroads.

The STB volition intimately scrutinize the merger to find if it tin conscionable the precise precocious barroom the committee established for railroad deals aft erstwhile consolidation successful the manufacture led to monolithic backups and snarled traffic.

Many investors judge that if the woody is approved, CSX volition request to find a merger spouse truthful it volition beryllium capable to vie effectively. But the different large railroads — BNSF, CPKC and Canadian National — person each said they judge forging cooperative agreements betwixt railroads makes much consciousness than a merger. But CSX inactive went retired and hired a caller CEO with a inheritance successful mergers this autumn to pb their railroad.

Vena and Norfolk Southern CEO Mark George person some said they are optimistic that this woody volition get approved nether Trump’s pro-business administration. The Surface Transportation Board is expected to beryllium indenpendant, but Trump fired the lone committee subordinate who opposed Canadian Pacific’s acquisition of Kansas City Southern railroad 2 years ago. That should let Trump to name 2 caller members of the five-person committee though Robert Primus has sued to situation his firing.

Union Pacific offered $20 cardinal currency and 1 stock of its banal to implicit the deal. Norfolk Southern shareholders would person 1 UP stock and $88.82 successful currency for each 1 of their shares arsenic portion of the woody that values NS astatine astir $320 per share. Norfolk Southern closed astatine conscionable implicit $260 a stock earlier this period earlier the archetypal reports emerged speculating astir the woody that includes a $2.5 cardinal breakup fee.