Two of the United States’ largest freight railroads have received overwhelming shareholder support for a landmark merger. Union Pacific (UP) will acquire Norfolk Southern (NS) in an $85 billion transaction, with 99.5% of UP shareholders and 99% of NS shareholders voting in favor. The combined network will span 50,000 miles of rail across 43 states, and connect 100 ports, creating the country’s first coast-to-coast railroad.

“We appreciate our shareholders’ support in reaching this important milestone on our path to building America’s first coast-to-coast railroad,” said Union Pacific’s CEO Jim Vena.

Norfolk Southern President and CEO Mark George added, “The merger will preserve union jobs and improve safety while delivering faster, more reliable transit times. Together with UP, we will make rail more competitive with highways, offering customers new, more attractive shipping alternatives, unleashing the industrial strength of American manufacturing, and creating new sources of economic growth across the country.”

Under the agreement, NS shareholders will receive one Union Pacific common share and $88.82 in cash for each NS share. The merged entity will retain the Union Pacific name and will link UP’s Western network with NS’s Eastern routes.

Vena continued,  “We look forward to filing our application with the Surface Transportation Board (STB) and detailing how the transaction will provide seamless, single-line service across the country to improve transit times, safely increase reliability and strengthen the competitiveness of U.S rail.”

As reported by FreightWaves, the merger application is expected to be submitted to the STB in early December.

While the deal has received broad support, some industry stakeholders have expressed concerns about potential cost increases and reduced service quality due to decreased competition.

Source: Union Pacific, Norfolk Southern, FreightWaves