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.

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), the largest U.S. railroad operator, is reportedly close to finalizing an agreement to acquire Norfolk Southern (NYSE:NSC), according to Bloomberg. The deal, expected as early as next week,