Union Pacific (UNP) Acquires Norfolk Southern (NSC) for $85 Billion

The Surface Transportation Board has accepted Union Pacific's (UNP) $85 billion acquisition of Norfolk Southern (NSC) valued at $320 per share. Union Pacific reported adjusted EPS of $2.93 on $6.22 billion in revenue, while Norfolk Southern posted adjusted EPS of $2.65 with revenue essentially flat at $3 billion. The adjusted operating ratios were 59.9% for Union Pacific and 68.7% for Norfolk Southern. Following these developments, Union Pacific's shares increased 13.5% year-to-date, despite a 3.9% drop after the STB's decision to pause its review.