Heating product manufacturers Baxi are discussing a possible merger with Dutch based De Dietrich Remeha.
The combination of the two firms would produce the third largest boiler makers in Europe, taking them Vaillant and Bosch with total sales of £1.5billion and a workforce of over 6,000.
De Dietrich Remeha chief executive Group Rob van Banning said: “This combination will create a new group that is a true leader in European heating with further potential in other geographies,” while Baxi’s chief executive Martin Coffey said such a move would have “strong industrial logic”.