Home Depot, the world's biggest do-it-yourself group, is in talks to acquire a large stake in Orient Home, one of China's largest DIY chains, the Financial Times reported.
The report cited people close to the situation as saying the U.S. group was in talks to acquire up to 49 percent in Orient Home from its parent, the Chinese conglomerate Orient Group, for more than U.S. $200 million.
An agreement would mark the U.S. group's entry into the $50 billion Chinese home improvement market, the report said.
It would also enable the U.S. group to compete with international rivals such as B&Q, owned by Kingfisher, the UK group, in China's fast-growing DIY market, the report added.
An official at Orient Group said in the report: "The two parties are still discussing all kinds of possibilities for the deal."
The Atlanta-based Home Depot declined to comment.
In 2004 it said it aimed to enter the Chinese market but has since given few details.
Sources told the newspaper that Orient Home had held talks with a number of international retailers but Home Depot was the favorite.
However, they said that no deal had yet been signed and the talks could still collapse, according to the report. (Forbes)
to Daily News