The rails sector is on high alert following reports that Union Pacific (UNP) is focused on acquiring Norfolk Southern (NYSE:NSC), which could create the nation's first coast-to-coast rails network if the deal cleared regulatory and White House scrutiny.

Union Pacific is in talks to merge with Norfolk Southern, according to The Wall Street Journal, in a deal that would shake up the railroad business in America.The Journal cited people familiar with the matter.

Union Pacific is reportedly considering acquiring a rival railroad, sending shares of CSX and Norfolk Southern higher.