WASHINGTON, Sept 19 (Reuters) - U.S. President Donald

Trump said on Friday that the proposed $85 billion Union Pacific ( UNP )

merger with Norfolk Southern ( NSC ) "sounds good to

me."

Last week, Union Pacific ( UNP ) CEO Jim Vena met with Trump in the Oval

Office to discuss the railroad's planned buyout of Norfolk

Southern ( NSC ), as it seeks regulatory approval for the biggest U.S.

rail merger in decades.

"Union Pacific ( UNP ) is a great railroad," Trump told reporters in

the Oval Office on Friday.

The July announcement of the merger between two of the four

major U.S. rail operators surprised the already highly

concentrated market. Such a proposal would have been unthinkable

under the Biden administration, which had an aggressive

antitrust policy.

Trump's support could accelerate the lengthy review process,

in a deal that faces resistance from rivals and pushback from

shippers concerned about reduced competition.

The tie-up, if approved, could reshape the U.S. freight rail

industry by creating the first coast-to-coast single-line

network, streamlining operations and eliminating interchange

delays in key hubs like Chicago.

Union Pacific ( UNP ) dominates freight rail operations in the

Western United States, while Norfolk Southern ( NSC ) is a leading

carrier in the East. Together, they form two of the four major

U.S. Class I railroads, alongside BNSF Railway and CSX Corp ( CSX )

.

Billionaire Warren Buffett, whose Berkshire Hathaway ( BRK/A )

owns BNSF Railway, sent a strong signal last month against

further consolidation and said he was not interested in buying

another railroad.

BNSF, strong in the West, and CSX, dominant in the East,

could remain the only major U.S. carriers that are not part of a

transcontinental system.

The White House said last week it was nominating Surface

Transportation Board member Michelle Schultz for a new term and

Richard Kloster, who heads a private transportation consulting

company, to an open seat at the agency.

The White House last month fired Surface Transportation Board

member Robert Primus, an appointee of former President Joe

Biden.