Sodexo considers buying Aramark, shares jump in after-hours

Sodexo, a French food services and facilities management company, is reportedly in discussions to acquire its U.S. competitor, Aramark. This potential acquisition has been a topic of conversation for several months, with the need for Sodexo to secure substantial funding for the deal being a significant consideration. Aramark, based in Philadelphia, has seen its stock price increase by 33% this year, valuing the company at approximately $9.8 billion. In contrast, Sodexo's market value stands at around $13 billion. Following the news of the acquisition talks, Aramark's shares experienced a notable surge of over 10% in after-hours trading, reflecting investor optimism regarding the potential deal. The discussions come at a time when both companies are navigating a competitive landscape in the food services sector. However, any merger or acquisition of this scale is likely to attract scrutiny from antitrust regulators, which could complicate the process. Sodexo has a significant global presence, employing around 430,000 individuals across 45 countries. The company previously merged its North American operations with Marriott International's food services in 1997, which has contributed to its growth and market position. The ongoing talks with Aramark could represent a strategic move for Sodexo to enhance its footprint in the U.S. market. As the situation develops, both companies have yet to provide official comments on the acquisition discussions. Investors and market analysts will be closely monitoring the situation, as the outcome could have substantial implications for the food services industry as a whole.