Union Pacific nears deal for Norfolk Southern at about $320 a share, Bloomberg News reports

July 28 (Reuters) - Union Pacific UNP.N is nearing an agreement for a cash-and-stock deal for Norfolk Southern NSC.N, valuing the smaller rival at about $320 per share, Bloomberg News reported on Monday, citing people familiar with the matter.

The offer would be comprised of about two-thirds in stock and one-third in cash, the report said, adding that while discussions are at an advanced stage, the terms could still change.

Reuters could not immediately confirm the report. Norfolk Southern and Union Pacific did not immediately respond to requests for comment.

Union Pacific said last week it was in advanced talks to acquire its rival, signaling that a deal to form a $200 billion coast-to-coast rail company could be close — and potentially trigger further consolidation among remaining freight rail giants.

The merger, which would be the largest-ever buyout in the sector, would create the first modern coast-to-coast single-line freight railroad in the United States, significantly affecting how goods from grains to chemicals and autos move across the country.