CSX railroad’s merger prospects derail as BNSF and CPKC make clear they aren’t interested in a deal

OMAHA, Neb. (AP) — The prospects for additional consolidation in the rail industry derailed this week when both of CSX’s potential partners said they weren’t interested in a deal.

Investors widely speculated that CSX would be an acquisition target once rumors of merger talks between Union Pacific and Norfolk Southern emerged over the summer, because of the challenge of competing against a nationwide railroad.

CSX’s stock nearly hit a new 52-week high last week at $37.25 before falling to $32.31 Tuesday after it became clear that neither BNSF nor CPKC railroads is pursuing the Jacksonville, Florida-based railroad, one of the six remaining major freight railroads in North America.

The Union Pacific-Norfolk Southern deal still faces a lengthy review by the U.S. Surface Transportation Board