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Union Pacific and Norfolk Southern shareholders voted in favor of the proposed merger of the two railroads, according to news releases from both companies on Friday.
Nearly 99 percent of Norfolk Southern’s shares were in favor of the deal, while 99.5 percent of Union Pacific’s shareholders voted in favor. CEOs of both railways hailed the results.
“Our shareholder approval is a milestone in our journey to create America’s first coast-to-coast transcontinental railroad that combines complementary networks and capabilities to create a multiplier effect for the benefit of all stakeholders,” Norfolk Southern President and CEO Mark George said in a news release.
The railroad says the planned combination will connect more than 50,000 miles of track in 43 states, and shippers will benefit from faster car transit times. However, U.S. lawmakers, industry stakeholders and rail rivals have voiced concerns about the merger, warning of its potential to pressure rates and service while eliminating competition.
The transaction is expected to close by early 2027, pending approval by the Surface Transportation Board and customary closing conditions.
“We look forward to filing our application with the Surface Transportation Board (STB) and detailing how this transaction will provide unified, single-line service across the country to improve transit times, safely increase reliability and strengthen U.S. rail competitiveness,” Union Pacific CEO Jim Vena said in announcing the company’s voting results.
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