Eve Sleep and Simba in 'very early stage' talks about possible merger
Online mattress maker Eve Sleep confirmed on Monday that it is in "very early stage" discussions about a merger with rival Simba.
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In a statement responding to recent press speculation, Eve said there can be no certainty that a deal will proceed, or as to the terms of any potential transaction.
If it goes ahead, the potential deal - which would see Eve buy Simba - could constitute a reverse takeover under AIM rules, Eve said. The group has requested that its shares be suspended from trading on AIM.
"The company will update shareholders with further information, as appropriate, in due course," it added.
Shore Capital analyst Clive Black said: "Aside from the potential success or otherwise of the transaction, we shall watch with interest to see if an increasingly interventionist Competition & Markets Authority takes an interest in this potential transaction in due course. Equally, it is also fair to say that both Eve and Simba are now in-play for those awake to the virtues or otherwise of each venture."