Moscow-based grocery retailer The Seventh Continent has said it is considering a merger with rival Perekryostok.

“The Seventh Continent is interested in the widening of its network, plans to develop organically and considers mergers and acquisitions of other networks, including Perekryostok,” The Seventh Continent was quoted by Reuters as saying.

The retailer’s statement came after the general director of Perekryostok told a local magazine the two chains were in talks about a possible “union”.