Railroad Operator Union Pacific Exploring Deal for Norfolk Southern
Two companies are holding preliminary deal talks
Railroad operator Union Pacific UNP -1.60%decrease; red down pointing triangle is holding talks to acquire its smaller rival Norfolk Southern NSC 3.65%increase; green up pointing triangle in what would be a megamerger in the railroad industry, according to people familiar with the matter.
The talks are early-stage and there are no guarantees they will result in any deal or receive regulatory signoff, the people said. It is also possible another suitor could emerge.
Union Pacific has a market value of some $140 billion, while Norfolk is valued at about $60 billion.