British online mattress retailer eve Sleep PLC on Aug. 12 confirmed that it is in "very early-stage discussions" to acquire rival Simba Sleep Ltd.

The development follows The Sunday Times reporting that senior executives from both companies have held merger discussions, with further talks scheduled this week.

Eve Sleep said its shares are temporarily suspended from trading in London until such time that either the company submits more details into the potential transaction, or if discussions about the potential deal have ended, or it has been concluded that the possible transaction is not a reverse takeover.

The company said there can be no certainty that the potential transaction will proceed.