The rival merger spawned changes, and it is rumored that US railroad giant CSX (CSX.US) hired Goldman Sachs to evaluate strategic options

The Zhitong Finance App learned that, according to people familiar with the matter, after the two major rivals announced the merger, American rail giant CSX Transportation (CSX.US) is cooperating with Goldman Sachs to evaluate strategic options to participate in industry integration. The Jacksonville, Florida-based freight operator has begun discussions with Goldman Sachs on the viability of the merger. People familiar with the matter stressed that discussions are still in the preliminary stages and may not necessarily lead to any deal.

Representatives from CSX and Goldman Sachs declined to comment.

At the time of the negotiations, the US rail industry is ushering in a wave of consolidation. This week, Union Pacific (UNP.US) announced the acquisition of Norfolk Southern (NSC.US) for $72 billion. This major deal puts tremendous pressure on competitors such as CSX and BNSF under Berkshire Hathaway (BRK.A.US), forcing them to consider maintaining market competitiveness through mergers and acquisitions.

CSX CEO Joe Hinrichs publicly stated this month that he is open to merger negotiations with other companies. According to information, the company's operating network covers 26 states, the District of Columbia, Canada's Ontario and Quebec provinces, and the total length of the railway line is about 20,000 miles.

The CSX stock price has remained flat for the past 12 months, and the current market value is about 66 billion US dollars. The activist investor Ancora Holdings Group revealed on Wednesday that it is increasing its CSX shares, believing that the railway operator's current performance has fallen short of expectations.

Historically, mergers and acquisitions in the railway industry have always been difficult to achieve due to the strict regulatory environment. However, in the early days of the Trump administration, Patrick Fuchs was appointed as Chairman of the Ground Transportation Commission. This official, seen as a supporter of industry integration, took office, creating more favorable regulatory conditions for mergers and acquisitions.