Union Pacific and Norfolk Southern confirmed that they are in “advanced” merger talks that would create a single U.S railroad with service stretching from the East to the West Coast. The Associated Press reported last week that the companies were discussing a tie-up but neither company acknowledged that until Thursday morning.

The proposed merger would establish a $200bn coast-to-coast rail company, as well as create the first modern West-to-East single-line freight railroad

The combination of two large rail companies would create the first coast-to-coast network, but the deal could reduce competition.