Union Pacific and Norfolk Southern are confirming they're in merger talks that would create North America’s largest railroad, stretching service from East to West Coasts.

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

Atlanta-based Norfolk Southern confirmed on Thursday that it is in merger talks with Union Pacific. The merger between two of the country’s major freight railroads would create a single U.S. railroad with service stretching coast-to-coast.