CSX Faces Pressure from Ancora to Consider Merger Amid Union Pacific's Acquisition of Norfolk Southern

Activist investor Ancora Holdings is pushing CSX to consider a merger with either Berkshire Hathaway's BNSF Railway or Canadian Pacific Kansas City Southern, according to The Wall Street Journal. Ancora has threatened to launch a proxy fight for board seats if CSX does not pursue a deal or replace its CEO. This comes after Union Pacific announced a deal to acquire Norfolk Southern.

Activist investor Ancora Holdings is urging CSX Corporation to consider a merger with either Berkshire Hathaway's BNSF Railway or Canadian Pacific Kansas City Southern, according to The Wall Street Journal. Ancora has threatened to launch a proxy fight for board seats if CSX does not pursue a deal or replace its CEO [1].

The push comes after Union Pacific announced a deal to acquire Norfolk Southern, which has sparked speculation about potential mergers in the railroad sector [1]. CSX, the largest railroad in the eastern U.S., operates over 20,000 miles of track in 26 U.S. states and two Canadian provinces [1].

Ancora, which recently won board seats at Norfolk Southern in a proxy fight, has criticized CSX CEO Joe Hinrichs for "anemic shareholder returns," poor personnel selection, and "disastrous operational performance" [2]. The activist investor believes that CSX needs to find a partner to boost its value and compete with the upcoming Union Pacific-Norfolk Southern merger [2].

CSX has been open to all opportunities to enhance shareholder value and has seen its stock gain roughly 1.5% on Tuesday, climbing 13.5% this year [1]. However, Ancora has accused the company's board of poor judgment and insufficient oversight, stating that the company's advisors have been talking to the media without attribution [2].

The commerce secretary, Howard Lutnick, has indicated support for consolidation in the railroad industry, stating that U.S. railway travel needs to be more efficient [1]. The Union Pacific-Norfolk Southern deal, if approved by regulators, would create a coast-to-coast freight rail network with approximately 50,000 miles of track across 43 states [1].

CSX is currently the largest railroad in the eastern U.S., and a merger with either BNSF or CPKC would create a significant coast-to-coast rail network [1]. However, a merger would also require regulatory approval and could face antitrust concerns.

References:
[1] https://www.reuters.com/sustainability/sustainable-finance-reporting/toms-capital-seeks-csx-meeting-after-buying-stake-sources-say-2025-08-19/
[2] https://markets.financialcontent.com/wral/article/bizwire-2025-8-19-ancora-issues-letter-to-csxs-board-of-directors-regarding-the-need-to-avert-a-permanent-impairment-of-value-and-aggressively-pursue-a-value-maximizing-merger