Union Pacific and Norfolk Southern Corporation (NSC) are set to form America's first transcontinental railroad following a successful merger discussion. The bids saw Union Pacific value NSC at roughly $320 a share. This proposed merger is expected to fundamentally transform the US freight and shareholder value. The timing aligns with Norfolk Southern's strong Q2 2025 performance, beating EPS and revenue estimates. However, a potential drop in early Q3 'weaker' revenue has been flagged. Regardless, NSC's dividend remains strong, with a recent announcement of $1.35 dividend amid these business developments. However, sentiments from industry analysts vary. Jim Cramer indicates that NSC has benefited from the merger talks but could still be 'vulnerable'. On the other hand, Norfolk Southern becoming a part of a $200 billion railroad corporation is considered a 'once in a lifetime' opportunity. As the merger progresses, both corporations have aimed to submit their merger application by January 29. The largest rail union has voiced opposition to the deal, voicing concerns over the fairness of the deal from Norfolk's public shareholders. Despite varied views on the impending merger, most believe Norfolk Southern's outlook remains positive.
Norfolk Southern Corp NSC News Analytics from Fri, 03 Jan 2025 08:00:00 GMT to Sat, 02 Aug 2025 16:22:49 GMT -
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