Railroad operator Union Pacific is holding talks to acquire its smaller rival Norfolk Southern in what would be a megamerger in the railroad industry, according to people familiar with the matter.

Wall Street Journal reports Union Pacific is in early-stage talks to acquire Norfolk Southern, in a deal that could create the largest rail operator in the US.

Union Pacific is in talks to merge with Norfolk Southern, according to The Wall Street Journal, in a deal that would shake up the railroad business in America.The Journal cited people familiar with the matter.