CSX, Norfolk Southern stocks rise on Union Pacific acquisition report

Investing.com -- CSX Corporation (NASDAQ: CSX) stock rose 5% in pre-market trading, while Norfolk Southern (NYSE: NSC) shares gained 4% following a report that Union Pacific (NYSE: UNP) is exploring a potential railroad acquisition.

According to Semafor, Union Pacific, the largest publicly traded railroad in the U.S., has hired investment bankers from Morgan Stanley to evaluate possible acquisition targets. While the specific target was not identified, the report cited Union Pacific CEO Jim Vena’s previous public comments about the benefits of creating a transcontinental railroad network.

Such a strategic move would require Union Pacific to combine its western rail network with one of two major East Coast carriers - either CSX or Norfolk Southern. Either acquisition would represent a significant transaction in the railroad industry, with CSX currently valued at approximately $62 billion and Norfolk Southern at around $58 billion.

A successful deal would create the first coast-to-coast railroad carrier in the United States, potentially transforming the competitive landscape of the freight transportation sector.

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