Union Pacific and Norfolk Southern shareholders voted in favor of the proposed merger of the two railroads, according to news releases from both companies Friday.
Nearly 99% of Norfolk Southern shares were cast in favor of the deal, while 99.5% of Union Pacific shareholder votes approved. CEOs for both railroads applauded the results.
“The approval of our shareholders marks a key milestone in our journey to create America’s first coast-to-coast transcontinental railroad, combining complementary networks and capabilities to unlock a multiplier effect for benefits to all stakeholders,” said Mark George, president and CEO of Norfolk Southern, in a news release.
The planned combination would connect more than 50,000 route miles across 43 states, with shippers benefiting from faster carload transit times, the railroads say. However, U.S. lawmakers, industry stakeholders and rail competitors have flagged concerns about the merger, warning of its potential to pressure rates and service while eroding competition.
The transaction is slated to close by early 2027, pending Surface Transportation Board approval and customary closing conditions.
"We look forward to filing our application with the Surface Transportation Board (STB) and detailing how the transaction will provide seamless, single-line service across the country to improve transit times, safely increase reliability and strengthen the competitiveness of U.S rail," Union Pacific CEO Jim Vena said in the company's announcement of voting results.
