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.

FILE PHOTO: A Norfolk Southern train rests near the University of North Carolina's energy generation plant, after delivering coal to the facility, in Chapel Hill, North Carolina, U.S. August 11, 2022. REUTERS/Jonathan Drake/File photo

Railroad operator Union Pacific is holding talks to acquire its smaller rival Norfolk Southern in what would be a megamerger in the railroad industry, according to people familiar with the matter.