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.

Merger talks to create the largest railroad in North America that would connect the East and West Coasts are underway between Norfolk Southern and Union Pacific. Discussions began during the

The Wall Street Journal reported that Union Pacific UNP is in talks to acquire Norfolk Southern NSC. Semafor reported that Union Pacific has hired investment bankers at Morgan Stanley MS to look into the acquisition of a rival.