Japanese retail giant Aeon plans to acquire a larger stake in supermarket chain Daiei.

Aeon is negotiating with Marubeni, which holds 29 per cent stake in Daiei, to buy its share. The move is part of Aeon’s strategy of becoming the largest shareholder in Daiei.

The retail giant, which currently holds 20 per cent, says the purchase is step towards making Daiei a subsidiary. Reports say it would cost Aeon 10 billion yen (US$105.15 million).

Aeon targets to finalise the negotiations by April. The retailer, which also operates supermarket chains My Basket, Maruetsu and Peacock Store, says Daiei will synergise its food marketing business.

In 2004, the hugely indebted Daiei has been restructured by Industrial Revitalisation Corporation of Japan (IRCJ), a government-sponsored organisation which helps revive ailing but viable companies.

Trading firm Marubeni bought 44.6 per cent stake in Daiei from IRCJ; it sold part of its stake to Aeon in 2007.