Skadden was recently featured in The Deal for its work representing Union Pacific Corporation in its combination with Norfolk Southern Corporation to create America’s first transcontinental railroad. The article, “Deal Diary: Skadden, Wachtell on Union Pacific-Norfolk Southern Tie-Up,” published on July 29, describes the transaction as “the largest U.S. deal signed up this year.”
Under the terms of the agreement, Union Pacific will acquire Norfolk Southern in a stock and cash transaction, implying a value for Norfolk Southern of $320 per share. The value per share implies an enterprise value of $85 billion for Norfolk Southern, resulting in the creation of a combined enterprise of over $250 billion. The combination will connect over 50,000 route miles across 43 states from the East Coast to the West Coast, linking approximately 100 ports and nearly every corner of North America.