Union Pacific Corp. could reach an agreement to acquire Norfolk Southern Corp. and create a transcontinental rail behemoth as soon as early next week, people familiar with the matter said.

The deal, which would be the largest deal ever in the rail industry, is likely to include both cash and stock, according to the people, who asked not to be identified discussing confidential information.

Union Pacific and Norfolk Southern announced on Thursday that they were in advanced talks. Details of an agreement, including the timing and structure, could still change, the people said.

Norfolk Southern is set to report second quarter earnings on July 29.

A representative for Union Pacific declined to comment, while a spokesperson for Norfolk Southern didn’t immediately respond to requests for comment.

A merger would transform the North American rail market, marrying Union Pacific’s network across the western U.S. with Norfolk’s East Coast routes. It would bring together two companies with a combined market value of roughly $200 billion, and heap pressure on rivals including CSX Corp. and Berkshire Hathaway Inc.’s BNSF to pursue deals of their own to keep pace.

Omaha, Nebraska-based Union Pacific’s shares have fallen 2.8% since July 16, the day before the first media reports about merger talks, giving it a market value of roughly $133 billion. Norfolk Southern has climbed about 8.5% during the same period, giving the Atlanta-based railroad a market capitalization of almost $64 billion.

Historically rail mergers have been difficult to consummate given the inhospitable regulatory environment. But there had been speculation that the industry was headed for another round of consolidation, fueled by the assumption that President Donald Trump’s administration could take a more amenable view to major deals than previous governments.

“We’ve done a lot of homework to get us to this place,” Union Pacific Chief Executive Officer Jim Vena told analysts after the talks were announced.

One of the current Trump administration’s earliest moves was to elevate Patrick Fuchs to chair the Surface Transportation Board. Fuchs is seen as a proponent of industry consolidation.

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