Deal Flow
Letter · prints on one page
Transaction tear sheetData as of Nov 7, 2026
M&A · Industrials · Railroads, Line-Haul Operating

Union Pacific Corp to acquire Norfolk Southern Corp

Announced Jul 29, 2025 · Pending Oct 1, 2025

Deal value$85.00BEV $85.00B
Premium—To unaffected price
EV / Adj. EBITDA14.3x7.0x EV / Revenue
ConsiderationCash and stock$320.00 per share

Transaction

Acquirer
Union Pacific Corp (UNP)
Target
Norfolk Southern Corp (NSC)
Buyer type
Strategic
Offer price per share
$320.00
Enterprise value
$85.00B
Status
Pending Oct 1, 2025

Deal protections

Break fee (target pays)
—
Reverse fee (buyer pays)
$2.50B · 2.9%
Go-shop
No-shop
Financing
No financing condition

Advisors

To the acquirer
Morgan Stanley, Wells Fargo
To the target
BofA Securities
Morgan Stanley fee
$52.5M
Wells Fargo fee
$52.5M

Sector context · Industrials

Comparable deals
95 in the prior 24 months
Premium
Sector median 38.5%
EV / Adj. EBITDA
14.3x vs. 9.6x sector median
Break fee
Sector median 2.6%

Timeline

  1. AnnouncedJul 29, 2025
  2. Proxy filedOct 1, 2025
  3. Definitive proxyOct 1, 2025
  4. Shareholder votePending
  5. ClosedPending

Valuation · fairness opinions

Trading comparablesMorgan Stanley$254.00$308.00
Trading comparablesMorgan Stanley$243.00$290.00
Future share priceMorgan Stanley$259.00$312.00
Future share priceMorgan Stanley$266.00$316.00
Discounted cash flowMorgan Stanley$274.00$342.00
Trading comparablesWells Fargo$240.00$294.00
Trading comparablesWells Fargo$236.00$276.00
Precedent transactionsWells Fargo$307.00$357.00
Trading comparablesWells Fargo$270.00$350.00
Trading comparablesWells Fargo$359.00$461.00
Offer $320.00

Implied value per Norfolk Southern Corp share by analysis, from Morgan Stanley and Wells Fargo.

Sources
  • 8-K (EX-99.2) · Jul 29, 2025
  • 425 · Jul 30, 2025

Adj. EBITDA is operating income + D&A + impairment, restructuring, deal costs and stock compensation, less any large gain on a sale, last twelve months, from the target's filings. Calculated by Castle, so it can differ from a bank's adjusted figure.

Prepared with Castle from public SEC EDGAR filings. Figures are extracted automatically; verify against the source documents. Not investment advice.