Union Pacific and Norfolk Southern shareholders have overwhelmingly voted to move forward with a proposed merger, both companies announced Friday.
Nearly ninety-nine percent of Norfolk Southern Corporation shareholders voted in favor of the merger, while 99.5% of Union Pacific did so, according to press releases from each company.
Executives of the two companies signed an agreement in July solidifying plans for the stock and cash merger, which is expected to create a combined enterprise of $250 million, according to a press release. The Union Pacific Transcontinental Railroad would connect around 100 U.S. ports on the East, West and Gulf coasts.
“The approval of our shareholders marks a key milestone in our journey to create America’s first coast-to-coast transcontinental railroad, combining complementary networks and capabilities to unlock a multiplier effect for benefits to all stakeholders,” Norfolk Southern CEO Mark George said in a press release that followed the vote.
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The deal still needs to receive Surface Transportation Board approval. The two companies are looking to close the transaction by early 2027. Union Pacific CEO Jim Vena will serve as CEO of the combined company.
The results of the stockholder vote will be filed with the U.S. Securities and Exchange Commission, Norfolk Southern’s release said.
"We appreciate our shareholders’ support in reaching this important milestone on our path to building America’s first coast-to-coast railroad,” Union Pacific CEO Jim Vena said in a release. “Our shareholders see the value and understand this merger will unlock new opportunities to enhance service, growth and innovation."
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