According to sources familiar with the matter, CSX Corp is collaborating with Goldman Sachs to assess strategic alternatives for participating in industry consolidation, following the merger announcement between two major competitors. The Jacksonville, Florida-based freight operator has initiated discussions with Goldman Sachs regarding the feasibility of potential merger opportunities. Sources emphasize that these discussions remain in preliminary stages and may not necessarily result in any transactions. Representatives from both CSX Corp and Goldman Sachs declined to comment on the matter.

These developments unfold as the U.S. railroad industry experiences a wave of consolidation. This week, Union Pacific announced its $72 billion acquisition of Norfolk Southern, a major transaction that places significant pressure on competitors including CSX Corp and Berkshire Hathaway's BNSF Railway to consider merger deals to maintain market competitiveness.

CSX Corp CEO Joe Hinrichs publicly stated this month that the company remains open to merger discussions with other companies. The company operates a network spanning 26 states, the District of Columbia, and the Canadian provinces of Ontario and Quebec, with approximately 20,000 miles of railway lines.

Over the past 12 months, CSX Corp's stock performance has remained relatively flat, with the company currently maintaining a market capitalization of approximately $66 billion. Activist investor Ancora Holdings Group disclosed on Wednesday that it is increasing its stake in CSX Corp, expressing the view that the railroad operator's current performance falls short of expectations.

Historically, railroad industry mergers and acquisitions have proven challenging due to stringent regulatory environments. However, the Trump administration's appointment of Patrick Fuchs as chairman of the Surface Transportation Board, an official regarded as supportive of industry consolidation, has created more favorable regulatory conditions for potential merger transactions.