Apparel and consumer goods supplier Li & Fung is reportedly in advanced talks to acquire apparel sourcing agent Synergies Worldwide.

The deal is expected to help Li & Fung gain better traction in the fast fashion and discount clothing market, Reuters reported. The Hong Kong-based company is talking about the finer points of the agreement, the report added. 

However, a spokesperson for Li & Fung said: "Li & Fung does not comment on market rumour."

Synergies Worldwide, which has denim research and development laboratories in Bangladesh, Pakistan and China, establishes offices for importers and brands in these sourcing countries.

In August, Li & Fung posted a 22% fall in core operating profits during the first half of the year, despite turnover increasing. It expects core operating profit to reach US$1.5bn by 2013 as part of its three-year plan.