Wal-Mart Stores may enter the race for Indonesisan retailer Matahari’s hypermarket business, Reuters reported. Reuters said earlier this week that private equity giant The Carlyle Group and South Korea’s Lotte Shopping had both put in bids for the chain of retail shops. It’s unclear if Wal-Mart put in a formal offer, but Reuters reported that the company has hired Barclays Capital to advise it on the deal, which could reach as high as $1 billion.
(Reuters) – Wal-Mart Stores Inc , the world’s top retailer, has joined the race to buy Indonesian retailer Matahari’s hypermarket business in a deal worth up to $1 billion, sources familiar with the matter told Reuters on Thursday.
Wal-Mart is expected to compete in the auction with South Korea’s Lotte Shopping and private equity fund Carlyle Group [CYL.UL]. [ID:nSGE6A104Z].
Although it was unclear whether Wal-Mart had submitted a formal offer, sources said the retailer has hired Barclays Capital to advise it on the transaction. The sources have direct knowledge of the process but were not allowed to speak on the record because details of the auction remain private.
Wal-Mart did not respond to phone calls seeking comment, while Barclays Capital declined to comment.
Matahari is selling Hypermart, Indonesia’s second-biggest hypermart chain after PT Carrefour Indonesia, to focus on its core healthcare and property assets.
Bank of America is advising Matahari on the deal, Reuters previously reported.
(Reporting by Denny Thomas; Additional reporting Bradley Dorfman in Chicago; Editing by Ken Wills)