Signet and Zale in Potential Merger Talks

British jewelry retailer Signet Group Plc is in talks about a potential merger with U.S. jeweler Zale Corp, says a report in the Financial Mail today.

The newspaper said, without citing any sources, that Zale apparently approached Signet in the past few months and talks.

Though it is too early to say what sort of deal could emerge from the talks, the Mail speculated that Zale’s takeover of Signet was more probable than a merger between the two rival companies.

It was unclear what form a deal would take but a takeover by Signet of smaller rival Zale was more likely than a merger, the newspaper said.

Around 73 percent of Signet’s sales are in the U.S where it operates as Kay Jewelers and Jared The Galleria of Jewellery.