Union Pacific Considering a Norfolk Southern Buyout, Report Says. Here’s What Will Matter. Union Pacific is in talks to merge with Norfolk Southern, The Wall Street Journal reported Thursday, in a deal that would shake up the railroad business in America.

The rails sector is on high alert following reports that Union Pacific ( UNP) is focused on acquiring Norfolk Southern ( NYSE: NSC ), which could create the nation's first coast-to-coast rails network if the deal cleared regulatory and White House scrutiny.

Union Pacific , the largest U.S. freight railroad operator, is exploring a possible acquisition of Norfolk Southern to create a $200 billion coast-to-coast rail network, a person familiar with the matter said.