Japanese retail group Aeon is reportedly considering buying Carrefour’s business in Malaysia as the French retailer plans to exit non-profitable markets, reports Reuters.

Carrefour CEO Georges Plassat said the company will focus on traditional markets such as France and Spain after delivering a net loss of €31 million (US$38.7 million) in this year’s first half. Recently, it announced the exit from its Singapore business, closing its two stores at Plaza Singapura and Suntec City before the year’s end. It also pulled out from Greece in July due to falling sales.

The French company withdrew from Thailand two years ago, selling its 42 stores to rival French operator Group Casino, which owns the Big C operation in southeast Asia.

Aeon, which runs supermarkets, hypermarkets, shopping malls, discount stores, and drugstores, said will increase dependence on overseas markets for growths as Japan’s economy slows due to weak consumer spending triggered by shrinking population and falling wages.

The source, who declined to be named, said the deal would be worth around US$300 million. Both Carrefour and Aeon declined comment.

Carrefour has 27 hypermarkets and supermarkets in Malaysia which earned 402 million euros (US$525 million) in revenue last year.

GB