Reports: French catering giant Sodexo to acquire rival Aramark (ARMK.US)

French food and catering company Sodexo SA is exploring the possibility of acquiring its U.S. rival Aramark Corp. (ARMK.US) in a bid to seek overseas growth, according to people familiar with the matter.

Sodexo has been intermittently discussing the possibility of buying Aramark over the past few months, the people said. Aramark's shares have risen 33% this year, giving the company a market value of about $9.8 billion.

Sodexo, which is listed in Paris, has a market value of about €11.6 billion ($13 billion). Any potential deal would likely face antitrust scrutiny, and Sodexo would also need to raise funds for such a large acquisition. It is unclear whether these discussions will lead to a deal, the people said.

Representatives for Sodexo and Aramark declined to comment. Aramark shares rose more than 10% after hours on Wednesday.

Aramark provides food and facility management services to schools, hospitals, businesses and large sporting events in a dozen countries. The company is also a concessionaire for 60 national and state parks in the U.S. It spun off its uniform rental service last year and registered the business as Vestis Corp. (VSTS.US).

Sodexo, based in Issy-les-Moulineaux, a suburb of Paris, specializes in providing catering services to institutions, businesses, schools and hospitals. The company has served at multiple Olympic Games, including the recent Paris Olympics.

In the U.S., Sodexo merged its North American business with Marriott International Inc.'s food services and facilities management business in 1997. According to its website, Sodexo currently employs more than 104,000 people at over 3,400 locations, including K-12 schools.