Union Pacific Corp (NYSE:UNP, ETR:UNP)’s proposed $85 billion acquisition of Norfolk Southern is “good for America”, Union Pacific CEO Jim Vena told Yahoo Finance at Ford's inaugural Pro Accelerate summit in Detroit on Tuesday.
Earlier in September while speaking with reporters in the Oval Office, President Trump said the deal “sounds good to me. Union Pacific is a great railroad.”
“When we (Vena and President Trump) spoke, I told him what we were doing and why we were doing it, and I'm appreciative that he sees the value in what we're doing," Vena said.
Union Pacific stated it plans to formally file papers for the acquisition with the Surface Transportation Board (STB) for approval by late October.
Last month, Trump fired STB member and Biden appointee Robert Primus, while adding industry consultant Richard Kloster to board along with STB Chair Patrick Fuchs earlier this year.
The moves to remake the STB is thought to be part of the US President’s push for broader deregulation.
Union Pacific argued the merger would create more supply chain efficiency.
If approved, the acquisition would create America's first transcontinental railroad, connecting more than 50,000 route miles across 43 states from coast to coast in the US.
The combined company would be led by Vena at least through 2028.