Source: Fortune
Summary
President Donald Trump expressed interest in the federal government acquiring a 15% stake in the $71.5 billion merger of Union Pacific and Norfolk Southern. The merger, which would be the largest railroad merger ever, has been put on pause by the U.S. Surface Transportation Board (STB) for additional review. The deal has faced opposition from politicians and industry groups, who fear it would consolidate monopoly power and lead to higher prices for consumers and fewer railroad jobs.
Our Reading
The strategy enters a familiar phase.
Union Pacific and Norfolk Southern’s merger, if approved, would create the largest railroad on the continent, with a combined enterprise value of $250 billion. The deal has been put on pause by the STB, citing the need for further review. Trump’s comments on acquiring a 15% stake in the merger have added to the uncertainty. The merger has faced opposition from politicians and industry groups, who fear it would consolidate monopoly power and lead to higher prices for consumers and fewer railroad jobs. The STB’s decision will be a test for the Trump administration’s approach to corporate deals.
The president’s dealmaking record is being put to the test.
Author: Evan Null
