MINNEAPOLIS (dpa-AFX) - An earlier report that said Target and Kroger are in merger talks is actually not true, according to CNBC.
There is 'no truth' to a report that Target and Kroger are in merger talks, a source close to the matter told CNBC on Friday.
CNBC's source says that the two companies had meetings over a Shipt partnership. Target had bought same-day delivery company Shipt for $550 million in December.
Earlier, Fast Company citing several people with knowledge of the matter, reported that Target and Kroger are in merger talks.
The report said that the two companies first started discussion about a partnership, which could improve Target's grocery business and provide Kroger's customers more access to merchandise and e-commerce. However, both the companies decided that 'a merger is the best path forward.'
Shares in both companies surged on Friday after Fast Company's report on the merger deal.
The merger rumors between Target and Kroger comes at a time when the grocery industry struggles with Amazon's increasing share in the market. Amazon had acquired Whole Foods Market for $13.7 billion in cash last year, leaving the whole grocery industry fearing that the e-commerce giant will monopolize the entire grocery market.
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