Union Pacific Forges Rail Behemoth in $72 Billion Norfolk Deal

Union Pacific Corp. agreed to acquire Norfolk Southern Corp. in a $72 billion cash-and-stock transaction, forming the only US transcontinental railroad in what stands to be the industry’s largest deal ever.

The tie-up will marry Union Pacific’s network across the western US with Norfolk’s East Coast routes, reshaping a domestic rail market that’s now comprised of just a half-dozen companies. Observers predict other major deals could follow, as competitive pressure rises on rivals including CSX Corp. and Berkshire Hathaway Inc.’s BNSF.