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Giant Food Stores, owned by a Netherlands company involved merger discussions, is based in Cumberland County.

Ahold, the Netherlands-based parent of Giant Foods, confirmed Tuesday it's having "preliminary talks" about combining with the Delhaize Group.

According to Reuters, combining the two rivals would create one of the world's 20 largest retailers, and would increase the buying power of the joined company, enabling it to better-compete against huge discounters.

Ahold operates Stop&Shop as well as Giant and Martin's Food Market, which are based in Cumberland County. Delhaize, based in Belguim, owns the Food Lion chain.

Reuters said the joined company would be worth about $25.85 billion, with 6,600 stores and annual sales of $69.3 billion.

Reuters said the combined company would rank near the top ten among North American retailers, but behind market leaders including Wal-Mart, Costco and Kroger.

Ahold said in the news release, "These discussions may or may not result in a future transaction. The company will communicate material updates, if any, in accordance with regulatory requirements."

Giant-Martin's operates about 200 grocery stores in Pennsylvania, Maryland, Virginia and West Virginia.

Reuters said Ahold and Delhaize talked about combining in 2007, but analysts regard the current talks as more likely to yield a deal.