USA: Class I railways Union Pacific Corp and Norfolk Southern Corp have confirmed that they are engaged in ‘advanced discussions regarding a potential business combination’ which would create a trans-continental network.
Union Pacific’s 52 000 km network serves 23 western states, while Norfolk Southern’s network covers 31 000 km in 22 eastern states.
’No assurances’
In a statement on July 24 the two railroads said ‘there can be no assurances as to whether an agreement for a transaction will be reached or as to the terms of any such transaction’. The companies do not intend to provide updates on the matter ‘unless and until they determine that disclosure is required or otherwise appropriate’.
The confirmation came after reports that Union Pacific was working with Morgan Stanley to explore an acquisition of an unspecified other major railway company, which was widely assumed to be Norfolk Southern.
