Union Pacific and Norfolk Southern are in merger talks to create North America’s largest railroad

Nati Harnik—APUnion Pacific and Norfolk Southern are in merger talks to create the largest railroad in North America that would connect the East and West Coasts, in today's financial world

The merger discussions began during the first quarter of this year, according to a person familiar with the talks who isn’t authorized to discuss them publicly

What the re reveals is would combine the largest and smallest of the country’s six major freight railroads

Both railroads declined to (an important development)

That merger combined the two smallest major railroads in North America and left only six major freight railroads, in today's financial world

However, But it was the first major rail merger apved in more than two decades

The evidence shows bar for railroad mergers in the U

Moreover, The CPKC merger was not judged under those rules because Kansas City Southern had an exemption from them as the smallest major freight railroad at the time

Union Pacific CEO Jim Vena talked earlier this year the potential benefits of such a merger because it would line deries all across the country by eliminating the delays that come along with one railroad handing shipments over to another, in this volatile climate

Plus it would simplify shipping for the companies that rely on railroads to der their raw materials and ducts

But in the past, some shippers have raised concerns the consequences of being left with even fewer options to ship their goods because the major railroads are already so powerful

Additionally, Some investors have long argued that the industry should eventually consolidate down to two East-West railroads crossing the United States alongside the two railroads that already cross Canada

Nevertheless, But regulators have been skeptical and taken a cautious apach

Any posed deal would face a lengthy STB review

That board is currently evenly split between two Republicans and two Democrats with one seat open (noteworthy indeed)

Citi Re analyst Ariel Rosa said in a re note that a major transcontinental railroad merger “would ly ve costly and time consuming, risking a years-long distraction to management, while facing significant pushback from regulators, politicians, employee unions, competitors, customers, and other stakeholders. ” Union Pacific, which is based in Omaha, Nebraska, generated $24. 3 billion revenue last year as its more than 30. 000 employees dered freight all across the western United States

Norfolk Southern reported $12

Norfolk Southern stock gained 3

Explore this year's list (which is quite significant).