Two of the largest toy manufacturers - Hasbro and Mattel are likely to merge, suggests a report by Bloomberg. Both the groups have been engaged in talks over a possible merger that would create one of the largest toy makers in the world.
According to reports, talks between the two have been on and off over the last few months after Hasbro approached the Barbie doll maker towards the end of last year.
It is professed that the attempt was made with a view to creating a single company with control over global brands such as Hot Wheels and My Little Pony.
Though financial details of the potential deal have not been revealed by either company, this merger will enable both the parties to control around one quarter of the entire toy market. While Mattel has been the larger company for the bulk of the last 20 years, at the time of approach, Hasbro had closed the gap between the two.
Hasbro is scheduled to report full-year earning on February 8th with revenue forecast to increase to about $4.4bn from $4.3bn in 2014. The toy maker currently holds the toy license for Star Wars: The Force Awakens that has helped the firm to a ‘strong start’ for the fiscal year.
Should a deal be struck between the two, it create greater control by combining together Mattel’s strength in the girls category and Hasbro’s force in the boys’ sector, to present a stronger competitor to LEGO, a firm that has been growing faster than either of its US rivals over recent years.