Reuters has announced that Wal-Mart Inc.(WMT.N) is planning to bid for the Hong Kong supermarket business which is up for sale by a company controlled by Asia’s richest man, Li Ka-shing. An August 15th date has been set for initial bids to purchase ParknShop. Parknshop operates 345 stores in Hong Kong, Macau, and mainland China. It earned HK$21.7 billion ($2.8 billion) in revenue last year.

Wal-Mart had previously announced plans to open 100 new stores in China over the next three years. In an effort to increase mainland China business, the company is hoping to create approximately 18,000 new jobs. Presently, WMTN has over 380 stores. As a corporate buyer, Wal-Mart could use ParknShop to increase operations in China. According to Wal-Mart CEO, Doug McMillion, the company is not interested in expanding to other countries, but wants more of its focus to be on improving business in growing markets like China and Brazil.

Foreign retailers have had some difficulties in managing growth increase in China during the past years. The largest hypermarket chain in the country is Sun Art Retail Group. The group is ventured between Ruentex Group and the French retailer Groupe Auchan SA, AUCH.UL.

Private equity firms had not been invited to bid in the beginning, however, KKR & Co LP (KKR.N) and TPG Capital have now been invited.

Under advisement from Bank of America Corp (BAC.N) and Goldman Sachs (GS.N), Li’s Hutchison Whampoa is undergoing a strategic review of the ParknShop supermarket business. This in turn could lead to a sale.

Rueters has also reported that Japan’s Aeon Co Ltd.(8267), China Resources Enterprise Ltd, Sun Art Retail, Wesfarmers Ltd. (WES.AX) and Woolworths Ltd (WOW.AX) have been invited to participate in the process and weighing bids.

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