@Petco is exploring the possibility of being acquired by @PetSmart. If the two companies merged, the resulting company would account for more than half of the U.S. pet supply industry’s revenues. Last year PetSmart ruled out the possibility of merging, because it didn’t believe the deal would receive antitrust clearance and didn’t want to give its biggest competitor access to confidential information. Last month, Petco’s private equity owners registered the company for an IPO that could value it at between $5B and $6B, including debt. Petco had ~$4B in sales in the 12 months to Jan. 21, while PetSmart had net sales of $7.1B in the 12 months to Feb. 1. - Link