Merger talks are reported to be underway between independent chain Coffee Republic and the London sandwich bar chain Benjys.


According to the Times, Coffee Republic executive chairman Bobby Hashemi is close to signing an agreement with Benjys CEO Ian Rickwood. The deal would see Benjys, which is backed by ECI Ventures, being reversed into Coffee Republic, the report continues.


The news comes just days after the UK’s largest independent coffee house chain Caffe Nero told Reuters it would consider acquisitions, though declined to comment on talk it had smaller rival Coffee Republic in its sights.


Coffee Republic could well be seeking strength in size to protect it from a takeover bid. Once merged with Benjys, the combined entity would move from a full stock market listing to the junior Alternative Investment Market, the Times reported.

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