In a statement, Alexandre Bompard, the CEO of French supermarket giant Carrefour said, it is weighing options which includes consolidations in the sector and that it has commenced talks with the family behind the Auchan chain of stores.
Both Carrefour and Auchan declined comment on reports of talks between the two companies over a possible deal.
The French finance ministry declined comment.
Earlier this year in June, Carrefour said it had started considering possible consolidation, divestitures or tie-ups of its foreign subsidiaries, but had yet to take any decisions over selling any of its assets.
In January, Canada’s Alimentation Couche-Tard dropped its $19.57 billion (16.2 billion euro) bid for Carrefour following opposition from the French government, citing food security concerns.