Union Pacific confirms merger talks

The nation’s second-largest railroad confirmed Thursday that it is in merger talks to become the biggest one.

Union Pacific said in a news release that it is in “advanced discussions regarding a potential business combination” with Norfolk Southern, which is the fourth-largest railroad in the U.S.

The Omaha-based railroad did not provide any other details and said it does not plan to provide any other updates.

The Wall Street Journal was first to report the news of the possible merger last week, which set off days of speculation.

If successful, the merger would create a $200 billion company with a coast-to-coast rail network. Union Pacific operates 32,000 miles of track in 23 states mostly west of the Mississippi River, while Norfolk Southern operates about 19,500 miles of track across 22 states mostly east of the Mississippi.

That would make the company larger than BNSF Railway, which is owned by Omaha-based Berkshire Hathaway.

Experts have said such a tie-up would likely face regulatory hurdles and a lengthy review by the Surface Transportation Board.