CSX Chief Joe Hinrichs stated that CSX is currently focused on its recent partnership with Berkshire Hathaway’s BNSF Railway.
CSX Corp. CEO Joe Hinrichs stated on Wednesday that railroad companies need to collaborate to address industry challenges and achieve sustainable growth.
“We’ll open all possibilities to create value for shareholders, properly grow the business, and serve our customers better,” Hinrichs said in an interview with Jim Cramer at CNBC. “We can do all of those by working with other railroads.”
Railroad firms have found renewed interest over the past few weeks, ever since Union Pacific agreed to buy Norfolk Southern to create a coast-to-coast powerhouse. According to a CNBC report, Hinrichs noted that a merger is not necessary for the company to increase efficiency and give customers a “seamless experience.”
He reportedly said that a merger remains an “option,” and the company would consider it if it received a suitable offer.
Retail sentiment on Stocktwits about CSX was in ‘extremely bullish’ territory at the time of writing.
Earlier this month, activist investor Ancora urged CSX to pursue a merger with a rival railroad operator or remove Hinrichs as CEO, on concerns that CSX would be at a disadvantage following the merger between Union Pacific and Norfolk Southern.
According to a CNBC report, Hinrichs stated that CSX is currently focused on its recent partnership with Berkshire Hathaway’s BNSF Railway, which aims to create new coast-to-coast railroad services to bolster freight transportation by making it faster and more efficient.
He added that the partnership enables the companies to collaborate and improve their business without having to wait for regulatory approval.
Earlier this week, Berkshire Chairman Warren Buffett dashed some hopes of a merger between BNSF and CSX after noting that, although he met with Hinrichs in early August, the company was not interested in acquiring CSX.
Hinrichs also denied receiving an offer from Berkshire but said the conglomerate made it clear that it wants to work together to “create growth opportunities” for everyone.
CSX stock has slipped marginally this year.
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