New York, Feb 27: Wal-Mart Stores Inc., the world's largest retailer, said on Mon

New York, Feb 27: Wal-Mart Stores Inc., the world's largest retailer, said on Monday it acquired a 35 percent stake in Chinese supercenter operator Bounteous Company Ltd., expanding its presence in the world's most populous country.

Terms of the transaction were not disclosed. Wal-Mart has an option, subject to unspecified conditions, to acquire a majority stake in Bounteous by 2010, spokeswoman Amy Wyatt said.

An acquisition could push Wal-Mart past France's Carrefour SA to become the biggest supercenter operator in China.

Closely held Bounteous, which is based in Taiwan, operates 101 hypermarkets in 34 Chinese cities under the Trust-Mart banner.

In a statement, Wal-Mart Vice Chairman Michael Duke called the investment ''an important step in bringing our additional scale to our China retail business.'' International expansion has grown more important for Wal-Mart as U.S. sales growth slows. In its fiscal quarter ending Jan. 31, total sales rose 10.9 percent to $98.09 billion, but international sales rose 29.6 percent to $22.73 billion. U.S. sales at stores open at least one year rose 1.6 percent.

Wal-Mart, based in Bentonville, Arkansas, said it operates 73 stores in China and employs more than 37,000 people there.

Trust-Mart stores employ more than 31,000 people, and will continue to operate under the Trust-Mart name, Wal-Mart said.

In October, Wal-Mart was eyeing a transaction under which it would have bought all of Bounteous at about $1 billion, people familiar with the matter said at the time.

Credit Suisse advised Wal-Mart on the transaction, and UBS Investment Bank advised Bounteous, Wal-Mart said.

Reuters