Sodexo is down as potential Aramark acquisition is maligned by Investing.com

Investing.com — Sodexo (EPA: ) is considering a possible acquisition of its U.S. competitor Aramark (NYSE: ), Bloomberg News reported late Wednesday, sending shares of the French catering company up 7.8% on Thursday.

The report, citing sources familiar with the situation, says Sodexo has been in ongoing talks about the deal with Aramark, a food and facilities management supplier.

“There may be logic in a combination from SW’s perspective to boost its US acquisitions/sales/brands, but we question the financials and execution of such a large integration,” analysts at Barclays said in a note .

However, it remains uncertain whether these talks will result in a formal agreement.

“However, given the market share positions, we suspect that antitrust may be an issue in some regions,” analysts at Jefferies said in a note.

Any potential acquisition could also face scrutiny from antitrust regulators, and Sodexo would need to secure the necessary funds for such a significant acquisition, the report added.

“Strategically, Sodexo has lagged peers’ net growth in recent years, so Aramark would be a useful growth driver with likely significant synergies,” Jefferies added.