By David Shepardson
WASHINGTON (Reuters) – U.S. President Donald Trump said on Friday that the proposed $85 billion Union Pacific merger with Norfolk Southern “sounds good to me.”
Last week, Union Pacific CEO Jim Vena met with Trump in the Oval Office to discuss the railroad’s planned buyout of Norfolk Southern, as it seeks regulatory approval for the biggest U.S. rail merger in decades.
“Union Pacific is a great railroad,” Trump told reporters in the Oval Office on Friday.
The July announcement of the merger between two of the four major U.S. rail operators surprised the already highly concentrated market. Such a proposal would have been unthinkable under the Biden administration, which had an aggressive antitrust policy.
Trump’s support could accelerate the lengthy review process, in a deal that faces resistance from rivals and pushback from shippers concerned about reduced competition.
The tie-up, if approved, could reshape the U.S. freight rail industry by creating the first coast-to-coast single-line network, streamlining operations and eliminating interchange delays in key hubs like Chicago.
Union Pacific dominates freight rail operations in the Western United States, while Norfolk Southern is a leading carrier in the East. Together, they form two of the four major U.S. Class I railroads, alongside BNSF Railway and CSX Corp.
Billionaire Warren Buffett, whose Berkshire Hathaway owns BNSF Railway, sent a strong signal last month against further consolidation and said he was not interested in buying another railroad.
BNSF, strong in the West, and CSX, dominant in the East, could remain the only major U.S. carriers that are not part of a transcontinental system.
The White House said last week it was nominating Surface Transportation Board member Michelle Schultz for a new term and Richard Kloster, who heads a private transportation consulting company, to an open seat at the agency.
The White House last month fired Surface Transportation Board member Robert Primus, an appointee of former President Joe Biden.
(Reporting by David Shepardson in Washington and Christian Martinez in Los Angeles; Editing by Leslie Adler and Matthew Lewis)
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