(UP) and Norfolk Southern Corp., major grain shippers and two of the six Class I freight railroads in North America, confirmed they are in “advanced discussions” regarding a potential merger. “There can be no assurances as to whether an agreement for a transaction will be reached or as to the terms of any such transaction,

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