Union Pacific and Norfolk Southern are in merger talks to create the largest railroad in North America that would connect the East and West Coasts.

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.

ATLANTA, GA — Union Pacific is exploring an acquisition of Atlanta-based Norfolk Southern. This could be the largest railroad deal ever merging the No. 1 and No. 5 North American railroads by revenue with a combined market value of almost $200B.