US railroads Norfolk Southern Corporation (NSC) and Union Pacific (UP) announced that their shareholders voted with more than 95% in favor to carry out their merger.
UP stated that 99.5% of the votes cast by its shareholders were in favor of issuing new common shares in connection with its merger with NSC.
“Our shareholders see the value and understand that this merger will unlock new opportunities to improve service, growth, and innovation. We look forward to submitting our application to the Surface Transportation Board (STB) and detailing how the transaction will provide seamless, single-line service nationwide to improve transit times, safely increase reliability, and strengthen competitiveness,” said Jim Vena, CEO of Union Pacific.
He indicated that the preliminary vote count from the special shareholders’ meeting represented almost 80% of all outstanding shares.
Meanwhile, the NSC stated that shareholders voted almost 99% in favor to approve its previously announced transaction.
“Our shareholders’ approval marks a key milestone in our journey to create America’s first transcontinental coast-to-coast railroad, combining complementary networks and capabilities to unlock a multiplier effect of benefits for all stakeholders,” said Mark George, president and CEO of Norfolk Southern.
He reiterated that the merger will preserve union jobs and improve safety while offering faster and more reliable transit times, and will also provide customers with new and “more attractive” shipping alternatives, unleashing the industrial strength of American manufacturing and creating new sources of economic growth across the country.
Under the terms of the agreement, NSC shareholders will receive 1.0 share of UP common stock and $88.82 in cash for each share of the other railroad. The transaction is expected to close in early 2027.
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