Hotel giant Accor has offered $1.2 billion to buy the Australian Mantra Group.
Paris-based Accor, one of the world’s largest hotel operators, and the Aussie company, whose brands include Mantra, Peppers and Breakfree are currently in discussions and any deal is subject to approval from both organizations’ boards.
"Mantra has granted Accor access to due diligence to determine if a transaction can be agreed and recommended unanimously by the Mantra Board," the Australian company said in a statement to the ASX.
"There is no certainty that an agreement will be reached or that the proposal will be implemented."
The Australian Competition and Consumer Commission (ACCC) and Foreign Investment Review Board would also need to pass any proposal as a deal would see the nation's two largest hotel chains effectively merge.
Speculation of the takeover made Mantra Group the best-performing stock on the ASX today, the ABC reported.