Norfolk Southern CEO: Rivals using ‘scare tactics’ against Union Pacific deal
In pointed remarks Thursday, Norfolk Southern CEO Mark George took aim at competitors for their opposition to his railroad’s planned merger with Union Pacific, saying rivals are using “scare tactics” to fight the proposal.
“Before we could even lay out the case (for the merger), there was a little bit of a panicked reaction,” George said Thursday on the company’s fourth-quarter earnings call. “And let’s face it — they’re all taking positions that they believe will benefit their own business.”
He went on to say there’s a lot of “misinformation” being circulated about the merger, which he said the company is addressing.
George’s remarks come as Norfolk Southern is seeking federal regulators’ approval of its plan to join forces with Union Pacific. The deal announced last summer would see Union Pacific acquire Norfolk Southern for about $85 billion to create the country’s first continental railroad.
The combined railroad’s headquarters would be in Nebraska, a move that could cut Norfolk Southern’s workforce at its Atlanta headquarters in half.
In their merger application with regulators, Union Pacific and Norfolk Southern argue their consolidation will allow rail to better compete with trucking. The companies estimate more than 2 million truckloads of annual long-haul traffic will move onto railroads.
But major railway rivals have come out against the move, calling it anticompetitive and destabilizing for the industry.
The companies are in the early innings of what’s likely to be a long quest for regulators’ approval. A final decision is likely to stretch into 2027.
That road may have gotten slightly longer in recent weeks.
Earlier this month, the federal Surface Transportation Board notified the companies that the 7,000-page merger application they submitted was “incomplete” and requested they supply a raft of additional information.
On Thursday, George said the STB’s decision was “not what we wanted,” but said it wasn’t surprising.
“When an application is 7,000 pages and marked incomplete, you feel kind of bummed about it, but we shouldn’t,” George said.
Norfolk Southern executives said Thursday they will resubmit an “augmented application” soon, but did not indicate exactly when it will be refiled.
Speaking on his company’s earnings call Tuesday, Union Pacific CEO Jim Vena offered a similar take, saying it would “take a few weeks to prepare” the new application.
“We view this as a short-term blip and do not expect a significant change to the timeline, as we are still targeting closing in the first half of 2027,” Vena said.
On Thursday, Norfolk Southern execs also touted the company’s performance in 2025. George described it as a “dizzying” year with on-and-off tariffs and a blockbuster merger progressing in the background.
Norfolk Southern’s net income in the fourth quarter last year was $644 million, down 12% compared with the same period in 2024. Fourth-quarter operating revenues were also $50 million lower than the same time in 2024.
The company’s overall freight volume was down 4% compared to the year prior last quarter. In a news release about the earnings, George praised the company’s overall performance, but acknowledged the role a “volatile and challenging macro-economic backdrop” played.
In 2026, George and other Norfolk Southern execs indicated they expect shifting tariffs and other forces will continue to create uncertainty.
— Staff writer Emma Hurt contributed to this report.
About the Author
Drew Kann is a reporter at The Atlanta Journal-Constitution covering climate change and environmental issues. His passion is for stories that capture how humans are responding to a changing environment. He is a proud graduate of the University of Georgia and Northwestern University, and prior to joining the AJC, he held various roles at CNN.
