Valor Economico last week reported that Wal-Mart Stores Inc. is in talks to acquire the Brazilian unit of French retailer Carrefour, in a step that would create the largest retailer in Latin America nation.

According to the newspaper, which did not unveil where it got the information, executives from Wal-Mart's headquarter in U.S. are hold talks with Carrefour's executives in French for a possible deal.

The newspaper, however, did not provide a potential price for the acquisition of Carrefour's Brazilian assets.

Contacted by Dow Jones Newswires earlier Tuesday, Wal-Mart and Carrefour officials were not immediately reached for comment.

If it takes place, the deal would create Brazil's largest retailer in terms of revenues, surpassing current market leader Companhia Brasileira de Distribuicao (CBD, PCAR4.BR), or CBD.

In 2010, Wal-Mart posted revenue worth 22.3 billion Brazilian reais ($13.8 billion) in Brazil, while Carrefour reported revenues worth BRL29 billion here in the same period. By comparison, CBD posted revenue worth BRL36.1 billion in the period.
 
In June, Abilio Diniz, CBD's chairman, proposed a merger with the Brazilian unit of Carrefour. However, the plan was abandoned after Diniz partner, French chain Casino, blocked any possible deal.
 
Over the past 40 years, the Carrefour group has grown to become one of the world’s leading distribution groups. The world’s second-largest retailer and the largest in Europe, the group currently operates four main grocery store formats: hypermarkets, supermarkets, cash&carry and convenience stores.
 
The Carrefour group currently has over 9,500 stores, either company-operated or franchises. A pioneering entrant in countries such as Brazil and China, the group currently operates in three major markets: Europe, Latin America and Asia.

With a presence in 32 countries, over 57% of group turnover derives from outside France. The group sees strong potential for further international growth in the future, particularly in such large national markets as China, Brazil, Indonesia, Poland and Turkey.

Wal-Mart Stores, Inc. branded as Walmart since 2008 and Wal-Mart before then, is an American public multinational corporation that runs chains of large discount department stores and warehouse stores.
 
The company is the world's 18th largest public corporation, according to the Forbes Global 2000 list, and the largest public corporation when ranked by revenue. It is also the biggest private employer in the world with over 2 million employees.

14th August 2011