Norfolk Southern Falls On Union Pacific Buyout
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Two of the largest US railroads, Union Pacific and Norfolk Southern, announced on Tuesday a plan to combine in a $72 billion deal that would create America’s first transcontinental freight railroad.
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On Tuesday, Union Pacific, which operates mostly in the Western U.S., announced that it would acquire Norfolk Southern, which operates in the East, for $85 billion. The deal would create the largest freight rail network in the country,
Norfolk Southern ( NSC) was down 2% in premarket trade after Union Pacific Corporation (UNP) and the company announced an agreement to create America’s first transcontinental railroad. UNP will take over NSC In a cash and stock deal, implying a value for NSC of $320 per share, making it an enterprise value of $85 billion for Norfolk Southern.