Union Pacific and Norfolk Southern confirmed Thursday that they are in merger talks that would create a single US railroad with a sprawling network, with service stretching from the East to the West Coast. The potential merger would combine the largest and smallest of the country's six major freight railroads, the AP reports. None of the current rail operators have a coast-to-coast network, reports the Wall Street Journal.
- There's widespread debate over whether such a merger would be approved by US regulators, which have established a high bar for consolidation in the crucial industry. That's largely because of the aftermath of an industry consolidation nearly 30 years ago that involved Union Pacific. Union Pacific merged with Southern Pacific in 1996 and the tie-up led to an extended period of snarled rail traffic on US rails. Three years later, Conrail was divvied up by Norfolk Southern and CSX, which led to more backups on rails in the East.