Union Pacific and Norfolk Southern confirmed that they are in “advanced” merger talks that would create a single U.S railroad with service stretching from the East to the West Coast. The Associated Press reported last week that the companies were discussing a tie-up but neither company acknowledged that until Thursday morning.

The combination of two large rail companies would create the first coast-to-coast network, but the deal could reduce competition.

Union Pacific (UNP) upgraded by Jefferies amid merger talks with Norfolk Southern (NSC). Explore how this deal could reshape the U.S. rail industry.