(Bloomberg) — The chief government officer of freight rail operator CSX Corp. is concentrated on producing returns from improved effectivity and efficiency — however he’s additionally open to merger prospects as trade rivals consolidate.
“I’m open to any path that may create shareholder worth,” Steve Angel, president and CEO of CSX, stated in an interview Thursday. Ancora Holdings Group took a stake within the firm previous to Angel’s arrival in September, with the activist funding agency stating that the railroad ought to pursue a merger.
Angel acknowledged that the proposed $72 billion merger between friends Union Pacific Corp. and Norfolk Southern Corp. would create challenges — and alternatives — for Jacksonville, Florida-based CSX. The Floor Transportation Board has “all types of instruments at their disposal” to look at the merger, he stated. “So we have to see how this performs out.”
Requested if he had a choice on a merger associate, Angel stated, “we now have our view of that, however I’ll preserve that one to myself.”
Within the interim, he’s content material to let the Union Pacific-Norfolk Southern merger approval course of play out, noting that the STB’s method is so intensive it was seemingly written to discourage consolidation. His first day on the job, he was given a short. He stated after studying it over, he thought, “Why would anyone try that? And the reply is, as a result of who’s within the White Home right this moment.”
Angel, who developed a status as a talented operator whereas CEO after which chair of business fuel agency Linde Plc, is concentrated on bettering shareholder returns that don’t require progress. “I really like progress, however I belief prices,” he stated.
He started his profession at Normal Electrical Co. in 1979, the place he held a wide range of administration positions and was chair of Linde till earlier this yr, having beforehand been CEO of the agency and its predecessor, Praxair Inc.
Early adjustments at CSX have included closing its aerospace division and promoting its company jets, whereas reducing down on using consultants, canceling its household day appreciation occasion and different budgeting measures.
Adjustments have additionally been made to the administration group, with Kevin Boone succeeding Sean Pelkey as chief monetary officer in October. Riz Chand was introduced in as chief human sources officer this month as chief administrative officer Diana Sorfleet retired.
Angel intends to create a tradition of “steady enchancment,” making incremental adjustments in collaboration with workers, which options a number of unions. He famous his expertise working with such teams at Linde.
“The union illustration at CSX, they’re fairly sensible individuals. So I feel it’s a must to have open communications with them. You’ve acquired to explain what’s happening within the enterprise and what you’re making an attempt to perform. And you then’ve acquired to discover a approach to do it collectively,” he stated.
CSX has a rail community of round 20,000 miles of observe throughout 26 states, the District of Columbia and the Canadian provinces of Ontario and Quebec, in line with its web site.
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