Al Root

Shares of CSX rose Monday after the railroad's board announced a "leadership transition," prompting investors to focus on M&A in the rail sector again.

CSX stock was up 3.1% at $35.07, while the S&P 500 gained 0.3% and the Dow Jones Industrial Average was off 0.1%.

The company said Steve Angel, who comes from outside the rail industry, had succeeded former CEO Joe Hinrichs, effective on Sunday. Angel led Linde, an industrial-gas company, from October 2018 to February 2022. And he ran Praxair, which merged with Linde in 2018, from 2007 to 2018.

"We are excited to welcome Steve as our new CEO. He is a visionary in creating long-term value and an expert in guiding companies through significant transformation," said John Zillmer, chairman of CSX, in a news release. "The Board is laser-focused on advancing CSX's strategic priorities and maximizing shareholder value."

Investors are likely to focus on "transformation" and "maximizing shareholder value." Merger speculation has swirled about the company ever since Union Pacific and Norfolk Southern announced plans to merge in July.

The combination would create a truly transcontinental railroad and put pressure on the likes of Berkshire Hathaway's BNSF and CSX to find merger partners or risk losing out to a more powerful competitor. Neither, however, appeared all that interested in a deal.

That has frustrated the activist investor and CSX shareholder Ancora, which believes that the business-friendly Trump administration creates a window for rail mergers to win regulatory approval. Those transactions have had a hard time getting the go-ahead in the past.

"We applaud the CSX Board of Directors for heeding shareholder feedback and terminating former CEO Joe Hinrichs," said Ancora in an emailed statement. "Although Steve Angel is not a railroader by trade, his M&A pedigree and value creation record indicate his appointment is an initial step in the right direction for CSX."

CSX stock was at about $33.50 in mid-July when news of a potential Union Pacific merger broke. It traded north of $36 after the Union Pacific deal with Norfolk materialized, only to fall back below $33 a share in late August after neither BNSF nor CSX appeared all that interested in pursuing a merger.

CSX is the smaller of the two railroads. It trades for about 19 times the earnings per share expected over the coming 12 months. Norfolk stock trades for about 22 times.

Write to Al Root at allen.root@dowjones.com

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September 29, 2025 13:46 ET (17:46 GMT)

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