*

Trump administration thinks merger "is an absolute win-win

for

the country," CEO says

*

Union Pacific ( UNP ) sought administration input before the

proposal,

sources say

*

Signals of regulatory support pressures rivals BNSF, CSX

By Sabrina Valle and David Shepardson

NEW YORK/WASHINGTON, Sept 12 (Reuters) -

Union Pacific Corp ( UNP ) CEO Jim Vena met with U.S.

President Donald Trump in the Oval Office to discuss the

railroad's proposed $85 billion buyout of Norfolk Southern Corp ( NSC )

, the company said on Friday, as it seeks regulatory

approval for the biggest U.S. rail merger in decades.

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.

The White House did not immediately respond to a request

for comment.

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 deal, 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.

In the White House meeting, Trump and Vena discussed "how

creating an American transcontinental railroad is a win for U.S.

competition, consumers, and the unionized workers whose jobs

will be protected when the merger is approved," the company said

in a statement.

Vena said at a Morgan Stanley conference on Wednesday that he

had meetings with "very senior people in the administration" the

day before, without naming them.

"They get it. They understand the value of what we are

proposing. And they think it is an absolute win-win for the

country," Vena said during the conference.

Union Pacific ( UNP ) sought administration input prior to launching

its bid, and received signals of support to move forward, people

briefed on the talks said.

Trump said on Friday on Fox News that he met with Vena

because the CEO wanted to discuss the merger with him.

RIVALS BOXED IN

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 )

.

When Union Pacific ( UNP ) and Norfolk announced the merger, the

industry expected the two remaining regional rivals to respond

by rushing to join forces to compete against a continental

giant.

But billionaire Warren Buffett, whose Berkshire Hathaway

owns BNSF Railway, sent a strong signal last month against

further consolidation and said he was not interested in buying

another railroad. BNSF recently expanded commercial agreements

with CSX instead of pursuing a merger.

CSX, meanwhile, faces pressure from activist investors to make

strategic changes, including potential M&A activity. Both

companies are closely watching how regulators respond to the

Union Pacific-Norfolk merger before making any moves.

Signs of the White House's support could force Buffett to

revisit his strategy.

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 on Thursday 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.

The dismissal was the strongest signal possible of White

House support for the deal, a person close to the transaction

said.