Union Pacific's $85 Billion Norfolk Southern Acquisition Faces Union Opposition
Written by Emily J. Thompson, Senior Investment Analyst
Source: Newsfilter
- Union Opposition: The Brotherhood of Railroad Signalmen, representing about 3,000 members, strongly opposes Union Pacific's proposed $85 billion acquisition of Norfolk Southern, warning that the deal could jeopardize safety and impact workforce welfare.
- Regulatory Review Initiated: Last week, Union Pacific and Norfolk Southern filed a nearly 7,000-page merger application with the U.S. Surface Transportation Board, marking the start of the regulatory review process, despite criticism from unions and rival railroads.
- Safety Concerns Raised: Union President Mike Baldwin emphasized that the merger is about expanding corporate power rather than strengthening the rail network, potentially shifting risks onto workers and the public, with historical precedents showing disruptive and dangerous outcomes.
- Industry Response: Facing significant challenges from unions and competitors, the merger plan may impact market trust and operational efficiency for both Union Pacific and Norfolk Southern moving forward.
NSC
$292.28+Infinity%1D
Analyst Views on NSC
Wall Street analysts forecast NSC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NSC is 314.91 USD with a low forecast of 295.00 USD and a high forecast of 354.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
5 Buy
7 Hold
0 Sell
Moderate Buy
Current: 291.410
Low
295.00
Averages
314.91
High
354.00
Current: 291.410
Low
295.00
Averages
314.91
High
354.00
About NSC
Norfolk Southern Corporation is a holding company engaged in the rail transportation business. The Company is engaged in the rail transportation of raw materials, intermediate products, and finished goods in the Southeast, East, and Midwest and, via interchange with rail carriers, to and from the rest of the United States. It also transports overseas freight through several Atlantic and Gulf Coast ports. It offers an intermodal network in the eastern half of the United States. Its railroad operations system reaches various manufacturing plants, electric generating facilities, mines, distribution centers and transload facilities. It serves various industries such as agriculture, forest and consumer products, automotive, chemicals, and metals and construction. Its coal franchise supports the electric generation market, directly serving over 18 coal-fired power plants, as well as the export, domestic metallurgical, and industrial markets, through direct rail and river, lake, and coastal.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
