Union Pacific is in talks to acquire Norfolk Southern, potentially creating a transcontinental rail giant. Union Pacific, with a $135.92 billion market cap, operates in 23 states, while Norfolk Southern, with a $60.27 billion market cap, operates in 22 states. The last Class I railroad merger was in 2023, and talk of mergers has increased since Trump’s re-election in 2024.

Investment firms are getting involved in the potential merger, believing a well-structured proposal with political support could succeed. Activist investor Ancora Holdings previously tried to gain control of Norfolk Southern but only secured board seats following a 2023 derailment. Union Pacific’s CEO has been supportive of mergers, despite potential regulatory hurdles.

Read more at Yahoo Finance: Union Pacific, Norfolk Southern in merger talks: WSJ