Shanghai, China, June 21--Home Depot Inc. is seeking to buy a stake in a Chinese counterpart for up to $500 million, according to China Business News.
The newspaper reported that Home Depot is in talks with Orient Group Inc. to take a stake in its unit Orient Home, which operates over 20 DIY outlets nationwide. It attributed unidentified sources.
The newspaper said it expects to finalize a deal at the end of the month. It did not specify the size of the stake the U.S. firm was eyeing.
Home Depot, which runs two procurement centers in China, announced plans last June to set up shops in the world's seventh largest economy. But it has made few moves so far, leaving its European rival, Kingfisher Plc. unit B&Q, to dominate a market estimated to be worth some $50 billion.
Local competitors include Home Mart, controlled by retail conglomerate Friendship Co. with about 20 outlets.
France's Leroy Merlin opening its first China store in Beijing last year -- its first in Asia -- and said it would run 20 outlets across the country within five years.
