Two of Spain's biggest hotel groups could be set to merge, with Grupo Barcelo lining up a takeover bid for NH Hotel Group.
In a statement to the country's stock exchange on Monday, NH Hotel Group confirmed the approach, with Grupo Barcelo proposing 60% ownership in a joint enterprise.
If the suggested deal goes ahead, then the two companies would achieve a combined annual revenue of approximately €3.7bn from hotels across Europe and South America.
At its current share price of €5 per share, NH has a market value of €1.75bn. Its biggest shareholder is the Chinese conglomerate HNA Group.
Earlier this year, the company revealed a three-year independent plan for its future and Reuters reports that there is no current plans to alter that strategy.
NH operates 400 hotels in 31 countries around the world, while Grupo Barcelo has 230 hotels in 21 countries. Grupo Barcelo refused to comment on the story.