
Union Pacific UNP.N to buy smaller rival Norfolk Southern NSC.N in an $85-billion deal
NSC down 2.9%, UNO slips 2.1% in early trading
Merger will create United States' first coast-to-coast freight rail operation
Combined enterprise value of company expected to be $250 bln, marking the largest-ever U.S. rail merger
Transaction could face several regulatory hurdles
NSC reports Q2 profit rise
YTD, NSC up 22%, UNP up nearly 0.5%