Union Pacific and Norfolk Southern exploring merger

Investing.com -- Union Pacific (NYSE: UNP) is exploring a potential acquisition of Norfolk Southern (NYSE: NSC) that would create a $200 billion coast-to-coast rail network, according to a Reuters report late Friday.

The talks between the two companies are in early stages, with no guarantee they will progress further. Any potential deal would likely face a lengthy and detailed regulatory review process.

A combination of these two major rail operators would likely attract intense regulatory scrutiny. The freight rail industry has already consolidated significantly over decades, shrinking from more than 100 Class I railroads in the 1950s to just six today.

The rumor was first circulated by several media outlets on Thursday.

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