Union Pacific and Norfolk Southern today cleared their first merger hurdle as shareholders overwhelmingly backed their deal to create the first transcontinental railroad.
In separate votes, nearly 99% of NS shareholders and 99.5% of UP shareholders approved UP’s proposed $85 billion acquisition of NS.
Shares in UP (NYSE: UNP) were unchanged on the news in early morning trading, while NS (NYSE: NSC) rose slightly more than 1%.
“The approval of our shareholders marks a key milestone in our journey to create America’s first coast-to-coast transcontinental railroad, combining complementary networks and capabilities to unlock a multiplier effect for benefits to all stakeholders,” NS Chief Executive Mark George said in a statement.
NS investors will receive one Union Pacific common share and $88.82 in cash for each share of Norfolk Southern owned.
UP investors, meanwhile, were asked to approve the issuing of new shares of UP common stock in connection with the merger.
“We appreciate our shareholders’ support in reaching this important milestone on our path to building America’s first coast-to-coast railroad,” UP CEO Jim Vena said in a statement.
The railroads plan to file their merger application with the Surface Transportation Board in early December.
Subscribe to FreightWaves’ Rail e-newsletter and get the latest insights on rail freight right in your inbox.
Related coverage:
Latest US railfreight in the red
Rail freight faces a mixed economic signal
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now