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

Norfolk Southern Corporation (NYSE:NSC) saw its stock rise 3.4% following confirmation that it is in “advanced discussions” with Union Pacific Corporation (NYSE:UNP) about a possible merger. Meanwhile,

Union Pacific and Norfolk Southern are nearing a $200 billion merger that could reshape U.S. freight transport, raising hopes for efficiency and concerns over competition.