(Reuters) – French food catering firm Sodexo is exploring a potential acquisition of its U.S. rival Aramark, Bloomberg News reported on Wednesday.
Sodexo has been periodically discussing the deal with food and facilities management provider Aramark in recent months, the report said, citing people familiar with the matter.
However, there is no guarantee that the talks will lead to a deal and, in any case, a potential deal could face antitrust scrutiny. Sodexo would also need to secure the funds for such a sizeable acquisition, the report added.
Philadelphia-headquarterd Aramark, which provides services across 15 countries, has a market capitalization of over $9.8 billion, as per LSEG data.
Aramark declined to comment on the report. Sodexo did not immediately respond to a Reuters request for comment late on Wednesday.
Sodexo, which provided catering for the Paris Olympic Games and the Paralympics this summer and spun off its voucher business Pluxee at the start of February, is still raising prices to cushion the impact of high inflation, though at a slower pace.
(Reporting by Surbhi Misra in Bengaluru; Editing by Shounak Dasgupta and Alan Barona)
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