Union Pacific and Norfolk Southern could announce a tentative merger agreement as early as this week, according to a published report. Bloomberg cited sources familiar with the talks in its report on Friday.

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

Union Pacific (NYSE:UNP) could reach an agreement to acquire Norfolk Southern (NYSE:NSC) in a potential cash-and-stock deal as early as this week. Read more here.