Drugstore chain Jean Coutu and grocery chain Metro issued a joint statement on Wednesday confirming that they're in "exclusive discussions" about a possible merger.
A deal could see shares of Jean Coutu Group acquired by Metro Inc. at $24.50 per share.
The statement suggests the proposed deal is subject to regulatory approvals.
At 9:29 a.m. on Wednesday morning, regulators halted trading in shares of Jean Coutu, and six minutes later, it did the same with shares in Metro.
That fueled speculation that the two companies might be plotting a big-time merger — similar to the one finalized in 2014 between two Ontario-based chains, Loblaws and Shoppers Drug Mart, aka Pharmaprix.
That deal was worth $12.4 billion.