North American railroad operator Canadian Pacific Railway has reportedly approached international transportation company CSX Corporation with a merger plan last week.

The Wall Street Journal also revealed that reports have emerged that CSX rejected the offer from Canadian Pacific, which would have been a significant development in the American railroad industry.

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If the potential merger plan was accepted, it would have formed a company with a combined market value of $62bn. The combined firm would have had a total of $18bn in annual revenue and more than 35,000 miles of track under control.

"If the potential merger plan was accepted, it would have formed a company with a combined market value of $62bn."

The second-biggest railway operator by revenue, Canadian Pacific has a market value of approximately $32bn, while the third-largest US carrier CSX holds a market value of $30bn.

However, Reuters reported that both the Canadian Pacific spokesman Martin Cej and CSX spokeswoman Melanie Cost refused to comment on the speculations.

According to the federal data, six major railroads operating in the US generated $2.15bn through transporting crude in 2013 compared with $25.8m in 2008.

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In this market, CSX holds authority over the rails that run from Midwest to refineries on the US East Coast, while Canadian Pacific controls the rails to North Dakota oil-loading terminals.