NEW YORK — According to a wire service, Union Pacific Corp., the No. 1 railway operator in the United States, said on Friday that it has acquired a majority stake in transport company Motor Cargo Industries Inc.
Union Pacific paid roughly $80 million for a 98.3 percent stake in Motor Cargo, a less-than-truckload carrier based in Salt Lake City, Utah.
Under terms of the acquisition, Union Pacific exchanged each outstanding share of Motor Cargo common stock for either 0.26 of a share of Union Pacific common stock, $12.10 in cash, or a combination of both.
Union Pacific will pay cash to acquire the remaining 1.7 percent of Motor Cargo by year-end, said a spokesman. The railway said it will merge Motor Cargo into its Motor Merger unit, which provides less-than-truckload services.
Shares of Union Pacific shares rose 1.79 percent, or 97 cents, to $55.07 on the New York Stock Exchange Friday afternoon. Those of Motor Cargo fell 12.68 percent, or $1.77, to $12.19 on the Nasdaq market.