Wal-Mart eyes bid for Indonesia Matahari units: sources

Friday, 5 November 2010 05:36 -     - {{hitsCtrl.values.hits}}

Hong Kong-HONG KONG (Reuters) - Wal-Mart Stores Inc (WMT.N), the world’s top retailer, has joined the race to buy Indonesian retailer Matahari’s (MPPA.JK) 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 (023530.KS) and private equity fund Carlyle Group CYL.UL.

Although it was unclear whether Wal-Mart had submitted a formal offer, sources said the retailer has hired Barclays Capital (BARC.L) 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 (BAC.N) is advising Matahari on the deal, Reuters previously reported.