As it turns out, tariff talks weren’t the only thing making inroads railroads this weekend. Union Pacific  (UNP) , America’s largest railroad, was slamming terms, seeking a deal which would make it even larger.

After days of rumors, including an eventual confirmation on Union Pacific’s Thursday earnings call, the railroad giant announced it would acquire Norfolk Southern  (NSC)  in an $85 billion deal. 

Per a release from the companies, the cash-and-stock deal will see Union Pacific pay $320 per share, or about a 25% premium. Norfolk Southern shareholders will get 1 share of Union Pacific, plus $88.82 in cash.

Assuming the deal isn’t held up by regulators, it would make Union Pacific the first transcontinental railroad, with some 52,000 total miles of track spanning the country. The combined firms would be worth over $250 billion as of this writing.

However, although shippers worry that a Goliath of this scale could arrest even more control over prices, the railroads are optimistic that they can complete the deal in early 2027. That bares, of course, on the support of the Trump administration, which has already voiced support for rail industry deregulation.

For Union Pacific, the pickup would also give it a gateway to the northeast, midwest, and southeast, where the company owns a limited amount of track. The two railroads would connect at junctures in St. Louis, Chicago, and Memphis.