Buffett Denies CSX Acquisition Rumors, Emphasizes Partnership

Warren Buffett, the renowned investor known as the "Oracle of Omaha," has categorically denied rumors that his company, Berkshire Hathaway, is planning to acquire CSX Transportation (CSX.US). In a recent interview, Buffett stated that he has no intention of acquiring any other railroad companies, including CSX. This statement comes in response to recent speculation that Berkshire Hathaway's subsidiary, BNSF, might be interested in acquiring the major U.S. railroad company.

The speculation arose after BNSF and CSX announced an expanded partnership last week, introducing a new intermodal service that spans the entire United States. This service aims to connect major routes across the country, providing a comprehensive solution for coast-to-coast transportation. The new service will include a route between Phoenix, Arizona, and Atlanta, Georgia, with the goal of shifting over-the-road (OTR) freight to rail transport. Additionally, the partnership will offer a new direct international intermodal service connecting New York and New Jersey ports, Norfolk, Virginia, and Kansas City.

Buffett's recent comments have put an end to these rumors, stating that while he and his successor Greg Abel met with CSX CEO Joseph Hinrichs to discuss deeper cooperation, there are no plans for an acquisition. The meeting, which took place on August 3 in Omaha, was a private discussion between the three executives, with no advisors present. Buffett emphasized that while Berkshire Hathaway is open to strengthening its partnership with CSX, an acquisition is not on the table. He believes that deeper cooperation between the two companies can yield benefits similar to those of a merger, without the need for an actual acquisition.

Investors have been pushing for a merger between CSX and BNSF, believing that such a deal would enable the two companies to effectively compete with the merged Union Pacific and Norfolk Southern. Activist investors have been pressuring CSX to consider a merger with either BNSF or Canadian Pacific Kansas City (CP), and have even hired investment banks to explore the possibility. However, Buffett's comments have made it clear that while Berkshire Hathaway is open to strengthening its partnership with CSX, an acquisition is not on the table.