Union Pacific Corporation has agreed to acquire its smaller rival Norfolk Southern Corporation in an $85 billion cash-and-stock deal, creating the first coast-to-coast freight rail operator in U.S. history. The merger would combine Union Pacific's western U.S. network with Norfolk Southern's 19,500 miles of track, forming a transcontinental rail giant with over 50,000 miles of track across 43 states and 100 ports. The transaction values Norfolk Southern at approximately $320 per share, representing a 25% premium, and is expected to generate around $36 billion in revenue, $18 billion in EBITDA, and target $2.7 billion to $2.75 billion in annual synergies. The deal, which stands to be the largest in the railroad industry, aims to reshape the movement of goods from grains to automobiles across the country and transform the U.S. supply chain. Union Pacific CEO Jim Vena confirmed the merger talks, and the companies have formally filed a notice of intent to combine with the Surface Transportation Board, initiating the regulatory review process. The merger has drawn criticism from Senate Democratic leader Chuck Schumer, who described it as a move toward monopoly. Additionally, the largest U.S. rail union plans to oppose the deal. The transaction is anticipated to close by early 2027, pending regulatory approval. In response to this consolidation, other rail companies such as CSX Corporation are exploring strategic options, with CSX reportedly working with Goldman Sachs to consider potential mergers or acquisitions to remain competitive. The combined entity would be a major player in the freight rail industry, intensifying consolidation pressures on rivals including CSX and Berkshire Hathaway's BNSF Railway.