HONOLULU -- The parent company of Times Supermarkets on Tuesday announced it reached an agreement to Star Markets.

Speculation has been circulating for months that Star would be bought out by Times Supermarkets, owned by QSI Inc.

"This is a huge step for our business and will be good for consumers," QSI President and CEO John Quinn said in a written statement. "Today, we are combining two long-time kamaaina companies to create a powerful new brand in the local grocery industry."

The United Food and Commercial Workers Union is currently in contract negotiations with Star Markets. The latest contract extension expires Aug. 1.

"There's a meeting tonight. We've held a meeting and put that notice out last week. We hope our members will come and get that information tonight," said Pat Loo, of UFPW.

"Knowing the companies involved what's the worst case scenario?" KITV asked.

"The worse case scenario is they close down and open a brand new store," Loo said.

UFCW currently represents 40 Star Market workers in the meat and fish departments.

The Fujieki family opened the first Star Market in 1927 and expanded to 12 locations. Two years ago, the Kaneohe store closed, followed by the Kahala market, which is now the home of Whole Foods.

The acquisition will raise the number Times stores to 17 on three islands with more than 1,600 employees. That makes Times the state's third largest grocery supermarket chain.

Late Tuesday afternoon, a meeting was scheduled for later in the week between Times and UFCW representatives. Another meeting is in the works with the ILWU, which represents Star employees on Maui.

Loo said he has received indication that should a sale take place, the current contract will be honored.