Brambles Ltd's board is believed to be looking at purchasing US-based pallet business IFCO for 1 bln usd, the Australian newspaper reported, without citing sources.

It said the world's largest supplier of pallets used for shifting goods is believed to be looking at IFCO as a way to take out a competitor and lift its market share in the US.

IFCO controls 12 pct of all pallet issues in the US, well ahead of the next largest at 1 pct.

The newspaper said the speculation follows a report from UBS (nyse: UBS - news - people) on the prospect of a takeover by Brambles of IFCO.

The UBS report said IFCO's unique nationwide infrastructure of service centers and existing relationships with Bramble's Chep pallets division's customers and retailers represent an ideal fit.

IFCO is owned by private equity operator Apax.