Albertsons is reportedly considering a takeover of Whole Foods

Grocery chain Albertsons is exploring buying Whole Foods according to the Financial Times' James Fontanella-Khan.

The FT, citing sources close to the matter, said that the private equity funds that own Albertsons, including Cerberus Capital Management, have held talks with bankers regarding a takeover Whole Foods.

Albertsons merged with rival grocery chain Safeway in 2014 and explored an initial public offering in 2015 before deciding against it.

While Foods has been struggling with sales woes for some time and announced in February that it was shuttering nine stores during the first part of 2017.

In response to the news, shares of Whole Foods spiked nearly 4% as of 1:36 p.m. ET.

This story is developing...