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Sources say that BNSF Railway has hired Goldman Sachs to acquire railroads.

Two sources with knowledge of the situation said on Monday that the Berkshire Hathaway owned BNSF Railway was working with Goldman Sachs in order to investigate the acquisition of a competitor railroad.

The deal would be the latest in a series of M&As that have taken place in the rail sector. This is due to rival Union Pacific possibly acquiring Norfolk Southern for $200 billion to create a coast-to-coast railway network.

The merger of Union Pacific and Norfolk Southern will create the U.S.'s first single-line West-to East freight railroad, changing the competitive landscape in the industry for competitors like BNSF.

BNSF didn't immediately respond to a comment request.

Semafor, the first to report the news, said that it was not clear whether BNSF intended to target Norfolk or CSX (the other East Coast carrier).

In extended trading, shares of Norfolk Southern rose 2.4%. (Reporting and editing by Anil D’Silva, AnshumanTripathy and ArsheeyaBajwa from Bengaluru and Sabrina Valle from New York.

(source: Reuters)