(Reuters) -U.S. grocery giant Kroger Co is in talks to merge with smaller rival Albertsons Companies Inc, Bloomberg News reported on Thursday, citing people familiar with the matter.
A deal could be reached as soon as this week, the report said, adding that no final decision has been taken and talks could still be delayed or falter.
Both companies did not immediately respond to Reuters’ requests for comment on the news.
In what could potentially be one of the biggest deal in recent years in the retail space, the merger talks come at time retailers and grocers are grappling with soaring costs and supply chain disruptions.
A potential deal between the two grocers would give the combined company a market valuation of about $47 billion. Shares of Albertsons surged 8% on the news, while Kroger shares were down marginally.
(Reporting by Aishwarya Venugopal in Bengaluru; Editing by Shinjini Ganguli)
