Trump, Union Pacific CEO Discussed $72 Billion Acquisition of Norfolk Southern

(Bloomberg) — Union Pacific Corp.’s chief executive officer discussed the railroad’s proposed $72 billion acquisition of rival Norfolk Southern Corp. with President Donald Trump as the company seeks regulatory approval for the deal.

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During a meeting in the Oval Office, Union Pacific CEO Jim Vena and the president “discussed how creating an American transcontinental railroad is a win for US competition, consumers and the unionized workers whose jobs will be protected when the merger is approved,” the company said in a statement.

The conversation highlights how Union Pacific is engaged at the highest levels of government as it works to create a coast-to-coast freight rail behemoth and capture freight volume from the trucking industry.

Vena on Wednesday said he met with senior administration officials this week, without naming them. “They understand the value of what we’re proposing. And they think it’s an absolute win for the country,” Vena said at a Morgan Stanley conference.

If Trump was among those signaling support to Vena, it would be a major sign of optimism for the merger, and a signal of the administration’s appetite for large-scale consolidation in contrast to the tough stance held by regulators under President Joe Biden.

Norfolk Southern’s shares touched a session high after Bloomberg reported the meeting between Vena and Trump. The stock rose less than 1% in Friday trading in New York, while Union Pacific’s shares fell less than 1%.

The deal is set to be reviewed by the US Surface Transportation Board, the rail industry’s economic regulator. US rules require rail mergers to show that a deal would serve the public interest and enhance competition, a step beyond merger requirements applied to other industries. The companies aim to complete the deal by early 2027.

On an enterprise basis, the agreement values the company at about $85 billion.

Speaking on Fox News earlier Friday, Trump credited Vena personally with encouraging him to pick Memphis as the next National Guard deployment during a recent conversation.

“They’re doing a merger, and he wanted to come see me,” Trump said Friday. “He’s good financially and he was a very impressive guy.”

The White House didn’t immediately respond to requests for further comment Friday.