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DJ An Instacart Sale Could Make Sense. Here's Why. -- Barrons.com (Dow Jones 10/26 16:23:27) By Anita Hamilton There's a lot to like about Instacart for potential buyers, starting with its steady sales growth of more than 10% in recent years. The stock closed up nearly 8% Monday, after rising 9% Friday, following a report of a possible sale. The Wall Street Journal said Monday that a possible deal with DoorDash could be completed as soon as this weekend and value Instacart at around $17 billion. A merger with a rival such as DoorDash or Uber seems like a logical progression, but there are ongoing concerns about how a combined service could take on growing competition from other retailers. Instacart declined to comment on the report, and neither DoorDash nor Uber -- who were named as possible suitors -- immediately responded to Barron's request for comment. The stock reversed an earlier drop of 5% on Monday after the WSJ's report about the possible timing of a deal. Citizens analyst Andrew Boone wrote Sunday that a merger "would unlock significant cost synergies, expand demand with access to larger loyalty programs, ease international expansion, and better utilize Instacart's best-inclass shopper network." What's more, a more favorable antitrust environment under the Trump administration compared with back in 2021 when there were last murmurings of a possible merger, could increase the odds that any deal gets regulatory approval, Boone added. But it's still not a slam dunk. "Instacart is a prized asset," Rosenblatt analyst Scott Devitt wrote in a note published shortly after the initial report came out. But he noted that Amazon and Walmart's deepening investment in the online grocery delivery business "is a structural headwind we expect to compound over time." And despite being the leader in online grocery delivery with 75% of big orders, only about 15% of groceries are purchased online, notes Citi's Ronald Josey. That makes long-term growth feel uncertain despite solid results in recent years. Instacart shares were trading at $59.70 Monday afternoon and are up 32% for the year. Write to Anita Hamilton at anita.hamilton@barrons.com This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal. What will be instacart spread when takeover is announced tomorrow