BNSF is reportedly also eyeing a major railroad merger, but Buffett throws some cold water
The rails are alive with the sound of consolidation.
Semafor on Tuesday reported that Berkshire Hathaway-owned railroad giant BNSF is working with Goldman Sachs to explore a potential megamerger with a rival like Norfolk Southern or CSX.
Speaking to CNBC Tuesday, Berkshire CEO Warren Buffett poured some cold water on the reports, or at least the part where Berkshire was working with an intermediary like Goldman on the deal. He told CNBC that nobody from Goldman had spoken with him or Berkshire CEO in waiting Greg Abel, and added that he wouldn’t seek advice from external bankers on deals.
The news comes just five days after reports that Union Pacific is looking into purchasing Norfolk Southern.
Shares of CSX were up 1.5% in morning trading; Norfolk Southern was up 0.7%.
Railroads are facing pressure as tariffs drag on traffic. Meanwhile, safety scrutiny stemming from Norfolk’s toxic and costly derailment in Ohio in 2023 still lingers.
Speaking to CNBC Tuesday, Berkshire CEO Warren Buffett poured some cold water on the reports, or at least the part where Berkshire was working with an intermediary like Goldman on the deal. He told CNBC that nobody from Goldman had spoken with him or Berkshire CEO in waiting Greg Abel, and added that he wouldn’t seek advice from external bankers on deals.
The news comes just five days after reports that Union Pacific is looking into purchasing Norfolk Southern.
Shares of CSX were up 1.5% in morning trading; Norfolk Southern was up 0.7%.
Railroads are facing pressure as tariffs drag on traffic. Meanwhile, safety scrutiny stemming from Norfolk’s toxic and costly derailment in Ohio in 2023 still lingers.
