Office Depot Inc. ODP.N, the second-largest U.S. office-supply chain, is in talks to sell the remaining 50 percent of its Mexican unit to retailer Grupo Gigante SAB (GIGANTE.MX), Bloomberg reported, citing people familiar with the situation.
Mexican retailer Grupo Gigante, which already owns the other half of Office Depot de Mexico, is in discussions with local banks to get financing for the deal, according to the report.
However, the parties are considering other options and the talks may still fall apart, one of the people was quoted as saying.
Office Depot declined to comment.
Grupo Gigante had tried before to buy the stake for $430 million in 2008, but was turned down by the U.S. office supply giant.
The stake is now estimated to be worth $700 million, according to the report.