Citi explores three-way merger for CSX after ‘sudden’ CEO change

Citi believes the “sudden” CEO change at CSX (CSX) announced on Monday increases the likelihood of the company exploring a merger. Citi believes a three-way merger between CSX, Canadian Pacific Kansas City (CP) and Berkshire Hathaway’s (BRK.A) (BRK.A, BRK.B) BNSF would be a “savvy counter-maneuver” to Union Pacific’s (UNP) merger with Norfolk Southern (NSC) (NSX). While Berkshire has shown a lack of interest in buying a rail, the three-way combination could make strategic sense, the analyst tells investors in a research note.