Walmart could bid for ParknShop

World’s largest retailer consulting with bank on acquisition.

Wal-Mart Stores, Inc. is considering making a bid for ParknShop, one of Hong Kong’s leading supermarket chains, said reliable sources. Walmart is expected to use ParknShop as a gateway into China.

Walmart is working with a bank as it weighs its options for ParknShop ahead of next week’s preliminary bid deadline. Walmart declined to comment on the process, however.

Walmart last year revealed plans to open 100 new stores in China over the next three years and create 18,000 jobs to boost its mainland business. Walmart opened its first China store in 1996 and now operates over 380 stores.

Japan’s Aeon, China Resources Enterprise, Sun Art Retail and Australian retailers Wesfarmers and Woolworths are among the eight parties invited to the bidding.

Hong Kong’s supermarket sector is dominated by ParknShop and Singapore’s Dairy Farm International. ParknShop has a 33% share while Dairy Farm has 39%.

ParknShop operates 345 stores in Hong Kong, mainland China and Macau.