M&A chatter swirls around Union Pacific and Norfolk Southern. This is why a deal makes sense. Merger talk is swirling around Union Pacific Corp. and Norfolk Southern Corp. in a deal that could create a railroad mega-carrier and a huge transcontinental network spanning the U.S.

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.

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.