Union Pacific has announced plans to acquire the Norfolk Southern in a deal worth $85 billion. If approved by regulators, it would create the first transcontinental railroad network in the United States.
Union Pacific was entangled in the Crédit Mobilier scandal, a fraud involving the company, which hurriedly constructed the railroad, and Crédit Mobilier of America, which was formed to finance the construction, from 1864 to 1867 and exposed in 1872.[3] The company was significantly overbilled, with executives and financiers, led by Thomas C. Durant, Oakes Ames, and Oliver Ames, embezzling large sums of money.[3] The company faced financial difficulty during the Panic of 1873.[3]
In the 1870s, under the ownership of Jay Gould, the company expanded its rail network noticeably.[3] On January 24, 1880, Union Pacific Railroad was consolidated with Kansas Pacific Railway and Denver Pacific Railway under a new holding company called Union Pacific Railway. Jay Gould controlled all three railroads but, after leveraging the company and paying large dividends, Gould sold a large stake that year.[3]
The Union Pacific Railway declared bankruptcy during the Panic of 1893, in part due to losses from the fraud and new competition, and went into government receivership.[3] In 1898, under a bankruptcy plan sponsored by Kuhn, Loeb & Co., it emerged from the receivership under a new similarly named entity controlled by E. H. Harriman.[3][7]
In 1901, the company acquired a 46% interest in Southern Pacific Railroad; however, the government forced the company to sell the stake in 1913 due to antitrust concerns.[3]
20th century
The Union Pacific Corporation was established in 1969 with its incorporation in Utah as a holding company for the Union Pacific Railroad and other subsidiaries.[3]
In 1986, the company acquired Overnite Transportation Company (now TForce Freight) for $1.2 billion.[11] At the time, it was the fifth largest trucking company in the United States and represented the expansion of Union Pacific east of the Mississippi River. It also created the first transcontinental transportation system in the United States.[12] However, the companies did not integrate well, exacerbated by issues with labor unions.[13] In 2001, the division acquired Motor Cargo Industries for $580 million.[14] In 2003, Union Pacific completed a corporate spin-off and initial public offering of Overnite. In 2005, the company was acquired by United Parcel Service for $1.3 billion.[15]
In March 2024 Union Pacific layoffs caused concern at the Federal Railroad Administration to the extent that the FRA, in a letter to UP's CEO, said "safety of railroad operations is paramount... decisions that comprise that fundamental... are unacceptable. You must ensure that highly trained and experienced personnel perform critical inspections and repairs.... Your railroad (layoffs) are far outpacing any of your Class 1 peers."[30]
On July 29, 2025, Union Pacific announced that it had reached an agreement to acquire the Norfolk Southern in a deal worth $85 billion. If approved by regulators, it would create the first transcontinental railroad network in the United States, and would span some 50,000 miles across 43 states. However, the merger would put around two-fifths of rail freight in the hands of one company, raising concerns that it would reduce competition in a critical industry.[31]
Headquarters history
The Union Pacific Corporation was headquartered in New York City at the time of its in 1969.[3]
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US$24.3 billion (2024)
