Target and Kroger discussing possible merger: report

[March 23, 2018]  (Reuters) - Department store operator Target Corp <TGT.N> and grocery chain Kroger Co <KR.N> are in talks about a possible merger, tech focused magazine Fast Company reported on Friday, citing people with knowledge of the matter.

 Shopping carts are seen at a Target store in Azusa, California U.S. November 16, 2017. REUTERS/Lucy Nicholson

Neither companies was immediately available for comment.

The companies first started talks last summer about a partnership that could improve Target's grocery business and give Kroger customers more access to merchandise and e-commerce, the report said.

While the talks started once again in 2018, the two companies appear to be struggling to decide whether a merger is the best path forward, the report said.

Shares of Kroger rose 8 percent in premarket trading on Friday while that of Target was trading up 2.8 percent.

Kroger has a market cap of $20.62 billion and Target $37.12 billion.

(Reporting by Uday Sampath in Bengaluru; Editing by Arun Koyyur)

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