US navigation equipment manufacturer Garmin has confirmed that it is in talks with Raymarine about a possible takeover of the British company

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US navigation equipment manufacturer Garmin has confirmed that it is in talks with Raymarine about a possible takeover of the British company.

Raymarine confirmed that it is in preliminary discussions with a number of parties, including Garmin, but said that at this stage there is no certainty that an offer will be made.

City sources suggest that a deal, if agreed, is likely to be worth in the region of £20 million. Raymarine’s market value has fallen dramatically this year, and in June it warned that it was close to its bank lending limit.

It says it is exploring several options, including the sale of the business or an equity fundraising and, in the absence of either of these, to secure additional medium term debt facilities with its banking syndicate.