Union Pacific, Norfolk Southern discuss merger to create transcontinental railroad, AP source says

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. A person familiar with the talks who isn't authorized to discuss them publicly said the merger discussions began during the first quarter of this year. Both railroads declined to comment. Within the industry there is widespread debate over whether such a merger would be approved by the Surface Transportation Board even though those regulators approved the deal that created CPKC railroad two years ago. The bar for major railroad mergers in the U.S. was raised substantially after several disastrous deals in the 1990s that snarled traffic.