An official statement from Villeroy and Boch said that the process was still at an early stage and that the company had taken no “binding decisions on whether or not to make the acquisition”.
The company added that it was still possible that it would decide not to pursue the project.
The German bathrooms and ceramics specialist was responding to reports that had appeared in Manager magazine, which said that the deal would “almost double” its sales.
Preliminary figures for the 2019 financial year showed that sales for Villeroy and Boch had declined from €853 million (£720m) in 2018 to €833m. Final figures are due to be published on February 6.
The Belgium-based Ideal Standard International has 9,000 employees and in 2019 boasted a 20% increase in earnings to €730m. The company declined to comment on the potential deal.