Donald Trump · U.S. · Fortune Technology
The companies declined, Trump told Fortune editor-in-chief Alyson Shontell, but he argued they will reconsider
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Trump then continued discussing his unique dealmaking record in his second term.
Key facts
- In January, the STB rejected the initial application for Omaha-based Union Pacific’s $85 billion acquisition, including debt, of Atlanta-based Norfolk Southern in a cash-and-stock deal
- On May 28, the STB accepted the revised application, which formally allows the deal to continue the acquisition process
- There is no clear connection between the president’s comments, made in a conversation with Fortune last month, and the delay, announced by the regulatory body, the U.S. Surface Transportation Board
- And the reporter say, ‘Well, the reporter want 15% of the railroad if you’re going to merge
Summary
Union Pacific CEO Jim Vena said he’s not interested in the federal government acquiring a stake in UP’s massive, $71.5 billion acquisition of Norfolk Southern—after President Trump expressed his interest to Fortune in owning a part of what could be the largest railroad merger—but Vena also didn’t definitively shut down the possibility. Speaking to CNBC on Thursday, Vena said he’s complimented by Trump’s interest, but that Union Pacific doesn’t need any such federal support. “We’re a company that can afford to make this deal,” Vena said. “I find it comforting that the president of the United States looked at what we’re doing and says, ‘Son of a gun, this is a good business, a good business move, strong, and I’d like to invest,’” Vena added. While Vena made it clear he considers federal intervention unnecessary, his remarks left open the potential to negotiate if the Trump administration presses the topic, possibly wanting to avoid antagonizing the president for now.