Union Pacific-Norfolk Southern Merger Carries Regulatory Risk -- Market Talk
Dow Jones01-08
1305 ET - The proposed merger between Union Pacific and Norfolk Southern comes with substantial regulatory risk, BMO analyst Fadi Chamoun writes in a note, downgrading UNP to market perform. A merger approval could trigger broader consolidation in the industry, potentially leaving only two dominant networks. That could intensify regulatory scrutiny, including rule changes from the Surface Transportation board, Chamoun writes. Those risks are too high to justify confidence in the companies' rosy projection of earnings approaching $20 a share three years following the merger, especially because follow-on consolidation or regulatory flux could limit synergy realization, Chamoun writes. (elias.schisgall@wsj.com)
(END) Dow Jones Newswires
January 07, 2026 13:05 ET (18:05 GMT)
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