Union Pacific Ranks 190th in Trading Activity as Merger Fears Dampen Investor Appetite and Volume Falls 55.74%

Market Snapshot

Union Pacific (UNP) closed its trading session on December 22, 2025, with a modest 0.16% increase in share price. However, the stock’s trading activity was subdued, with a volume of $0.49 billion, representing a 55.74% decline from the previous day’s volume. This drop in liquidity placed UNP at rank 190 in terms of trading activity for the day, highlighting reduced investor participation despite the slight price gain. The mixed performance reflects cautious market sentiment ahead of regulatory developments related to the company’s proposed $85 billion acquisition of Norfolk Southern.

Key Drivers

The Brotherhood of Railroad Signalmen (BRS), a union representing approximately 3,000 workers at both Union Pacific and Norfolk Southern, has emerged as a vocal opponent of the proposed merger. In a statement, BRS President Mike Baldwin criticized the deal as a move to consolidate corporate power rather than enhance rail network efficiency. The union emphasized concerns that the merger could compromise safety standards, shift operational risks onto employees and the public, and replicate past industry disruptions that proved “dangerous and costly.” This opposition adds to growing regulatory scrutiny, as the U.S. Surface Transportation Board (STB) initiates its review of the 7,000-page merger application.

The merger’s stated objective—creating the first coast-to-coast railroad in the U.S.—has faced consistent resistance from labor groups. Last week, the Teamsters union, representing nearly 20,000 rail workers, also voiced opposition, citing similar concerns about workforce stability and safety. These collective challenges underscore a broader skepticism among stakeholders about the merger’s benefits. While Union Pacific has asserted that the deal would reduce shipping delays by minimizing handoffs between railroads, critics argue that such efficiency gains may come at the expense of operational complexity and labor rights.

The regulatory landscape remains a critical uncertainty. The STB’s evaluation will weigh the merger’s potential to enhance competition, infrastructure, and consumer benefits against its risks to safety and labor dynamics. BRS’s formal submission of comments to the STB signals a strategic effort to influence the review process, potentially prolonging approval timelines. Market participants are closely monitoring the STB’s stance, as delays or conditional approvals could impact investor confidence in the merger’s execution and long-term value proposition.

Despite the union pushback, Union Pacific has maintained its commitment to the merger, stating that “every employee with a union job at the time of the merger will continue to have one.” This assurance aims to address workforce concerns, though critics remain skeptical about whether contractual protections will be upheld in practice. The company’s ability to navigate regulatory and labor hurdles will be pivotal in determining the merger’s success and, consequently, its stock performance. For now, the muted trading volume suggests investors are adopting a wait-and-see approach, prioritizing clarity on regulatory outcomes over immediate price movements.

The broader implications of the merger extend beyond Union Pacific and Norfolk Southern. A successful deal could reshape the U.S. rail industry by consolidating two major players, potentially altering pricing structures and service reliability. Conversely, regulatory rejection or significant modifications to the proposal could force the companies to reassess their strategic direction, introducing further volatility to the sector. As the STB’s review progresses, stakeholders will scrutinize the balance between corporate ambition and public interest, a dynamic that will likely continue to shape market sentiment in the coming months.