Trump Backs $85 Billion Union Pacific–Norfolk Southern Merger

U.S. President Donald Trump voiced support on Friday for Union Pacific’s proposed $85 billion acquisition of Norfolk Southern, calling it “a great railroad” and saying the deal “sounds good to me.” The merger, announced in July, would create the first coast-to-coast U.S. freight rail network, streamlining operations and reducing interchange delays at major hubs like Chicago.

Union Pacific CEO Jim Vena recently met with Trump in the Oval Office to discuss the merger, which seeks regulatory approval amid resistance from competitors and shippers worried about reduced competition. The deal marks the biggest U.S. rail merger in decades and comes in a market already dominated by four major carriers. Union Pacific controls freight operations in the West, while Norfolk Southern leads in the East. Together, they rival BNSF Railway, owned by Warren Buffett’s Berkshire Hathaway, and CSX Corp.

Industry experts note that Trump’s backing could speed up the lengthy regulatory review process. Under the Biden administration, such a merger would have faced heavy antitrust scrutiny, reflecting its tougher stance on corporate consolidation. Critics argue that the tie-up could reduce competition and raise costs for shippers, while supporters believe it would modernize the freight rail system and improve efficiency across the U.S.

Buffett, however, signaled opposition to further consolidation, stating BNSF is not pursuing additional railroad acquisitions. If approved, the merger would leave BNSF and CSX as the only major standalone U.S. railroads outside a transcontinental system.

The Surface Transportation Board (STB), the federal agency overseeing rail mergers, will play a decisive role in the approval process. The White House recently nominated STB member Michelle Schultz for a new term and tapped transportation consultant Richard Kloster for an open seat. Meanwhile, Biden appointee Robert Primus was dismissed last month, signaling a potential regulatory shift favorable to consolidation.