By Maarten van Tartwijk 

Dutch food retailer Koninklijke Ahold NV and Belgium's Delhaize Group confirmed Tuesday they are in talks about a possible merger that could create one of Europe's biggest supermarket operators.

However, the companies cautioned that the talks may not result in any deal.

No financial details of the potential deal were disclosed, however, based on Friday's closing share prices--before renewed speculation about a deal surfaced--the merged company would be valued at EUR22.91 billion ($25.79 billion.)

A tie-up between the two food retailers has been the subject of speculation for years. The companies reportedly held negotiations about a merger in 2006.

A combination would create one of Europe's largest food retailers with around EUR54 billion ($60.6 billion) in annual sales. It would also create a strong player along the east coast of the U.S., where both companies generate about 60% of their total revenue.

Ian Walker contributed to this article.

Write to Maarten van Tartwijk at maarten.vantartwijk@wsj.com

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