Union Pacific and Norfolk Southern are nearing a $200 billion merger that could reshape U.S. freight transport, raising hopes for efficiency and concerns over competition.

The proposed merger would establish a $200bn coast-to-coast rail company, as well as create the first modern West-to-East single-line freight railroad

Union Pacific (NYSE:UNP) was raised to buy from hold at Jefferies after the railroad operator confirmed it was in talks with Norfolk Southern (NYSE:NSC) about a business combination. Investors should start building a position in Union Pacific (NYSE:UNP) to "get in on the ground level" on what is likely a "transformational" combination,