Union Pacific is in talks to merge with Norfolk Southern, The Wall Street Journal reported Thursday, in a deal that would shake up the railroad business in America.The Journal cited people familiar with the matter.

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.

Railroad operator Union Pacific is exploring a deal to buy smaller rival Norfolk Southern , the Wall Street Journal reported, in a merger that would bolster the industry leader's heft and likely draw intense regulatory scrutiny.