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.

The rails sector is on high alert following reports that Union Pacific (UNP) is focused on acquiring Norfolk Southern (NYSE:NSC), which could create the nation's first coast-to-coast rails network if the deal cleared regulatory and White House scrutiny.