Union Pacific to Acquire Norfolk Southern in $85 Billion Railroad Merger

Union Pacific said on Tuesday it would buy smaller rival Norfolk Southern in an $85 billion deal, to create the nation's first coast-to-coast freight rail operator.

This would mark the largest-ever buyout in the sector, merging Union Pacific, the biggest U.S. railroad operator, with Norfolk, one of the top players.

The deal would combine Union Pacific's stronghold in the western two-thirds of the U.S. with Norfolk's 19,500-mile network that primarily spans 22 eastern states.