Union Pacific Shares Climb 1.48% on Merger Push, Ranks 211th in Daily Trading Activity

Market Snapshot

On January 15, 2026, Union Pacific (UNP) shares rose 1.48%, outperforming broader market trends. The stock saw a trading volume of $0.56 billion, ranking 211th in daily trading activity. The gain followed the company’s engagement with customers at the Midwest Association of Rail Shippers (MARS) winter meeting, where it defended its proposed merger with Norfolk Southern. The trading data reflects investor confidence in the merger’s potential to reshape the railroad industry, despite ongoing regulatory scrutiny and opposition from competitors.

Key Drivers

The proposed merger between Union Pacific and Norfolk Southern remains the central catalyst for UNP’s recent stock performance. On January 15, Union Pacific CEO Jim Vena reiterated the merger’s strategic rationale during the MARS meeting, emphasizing its potential to inject competition into the railroad sector and lower costs for shippers. The companies submitted a 7,000-page application to the Surface Transportation Board (STB) in December 2025, supported by 2,000 letters of endorsement from customers, public officials, and unions. Vena highlighted that the merger would create a coast-to-coast transcontinental railroad with minimal geographic overlap, enabling faster, more efficient service and reducing reliance on long-haul trucking.

Opponents have raised concerns about reduced competition and potential price hikes, but Union Pacific has countered these claims with data from industry experts. A study by Oliver Wyman cited in the merger application found that interline freight traffic over 1,000–1,500 miles costs 35% more than single-line rail service. The company argues that eliminating handoffs between railroads will streamline operations, cut costs, and enhance reliability. Additionally, Union Pacific emphasized that its merger with Norfolk Southern would not disrupt existing routes for most shippers, as the two networks serve distinct regions of the U.S.

The merger’s potential to strengthen the U.S. supply chain further bolstered investor sentiment. Union Pacific highlighted that the combined network’s 50,000 route miles would offer greater flexibility to reroute traffic during disruptions, such as weather events or congestion. This resilience, coupled with the ability to serve underserved markets like the Watershed region, positions the merger as a growth opportunity. Over 500 shippers have already endorsed the application, signaling broad industry support for the transaction’s benefits.

Addressing labor concerns, Union Pacific reiterated its commitment to protecting union jobs. The company announced groundbreaking “jobs-for-life” agreements with multiple unions, ensuring that employees retain their positions post-merger. This contrasts with historical criticisms of rail mergers leading to workforce instability. The labor assurances align with Union Pacific’s broader narrative of fostering a resilient, innovative railroad industry capable of supporting a growing U.S. economy.

Regulatory uncertainty persists, however, as Canadian National Railway (CNI) and other critics have challenged the merger’s transparency and potential competitive harms. Union Pacific maintains that its application is comprehensive and transparent, inviting the STB to review the detailed operating plans and economic analyses provided. The company’s proactive engagement with stakeholders at the MARS meeting underscores its determination to address misinformation and build a coalition of supporters ahead of the regulatory review process.

The 1.48% stock gain on January 15 reflects optimism that the merger could unlock operational efficiencies and market share growth. With the railroad industry facing pressure to modernize and reduce carbon footprints, Union Pacific’s vision for a transcontinental network aligns with long-term trends favoring cost-effective, sustainable freight solutions. As the STB evaluates the application, the company’s ability to navigate regulatory and political challenges will remain a critical factor in determining the merger’s ultimate success and its impact on UNP’s valuation.