Wal-Mart (NYSE:WMT) is reportedly exploring a potential acquisition, valued as high as $8 billion, of the Brazilian unit of French retailer Carrefour, reviving an older attempt that was never brought to fruition, according to The Wall Street Journal.
The worlds biggest retailer has not yet initiated discussions with Carrefour or contacted the company about its interest, but two people close to the matter called its interest serious, according to the Journal
Wal-Mart last attempted to acquire the Brazilian branch two years ago, however talks ultimately fell through due to a disagreement over price.
Investment bank UBS (NYSE:UBS) is advising Wal-Mart on making an offer for Carrefours Brazilian stores that could range from $6 billion to $8 billion, according to the report.
The worlds second biggest retailer behind Wal-Mart, Carrefour spokespersons told the Journal the company remains committed to staying in Brazil as it represents an important strategic market.
We plan to remain there and grow, the spokeswoman told the Journal.