Union Pacific has agreed to acquire Norfolk Southern in an $85 billion deal, creating a transcontinental railroad and the largest in the U.S., the companies announced. Why it matters: The railroad megamerger requires regulatory authorization and could push other competitors BNSF and CSX into a deal of their own.

(Reuters) -Union Pacific, the largest U.S. railroad operator, could reach an agreement to acquire rival Norfolk Southern as soon as early next week, Bloomberg News reported on Friday, citing people familiar with the matter.