France's Carrefour SA, the world's second-largest retailer, said it plans to invest 200 million yuan (US$24.6 million) to purchase rival Nextmart, launching a new round of competition in Shanghai's retail market.

　　If the deal is completed, it would represent Carrefour's first acquisition since it entered the Chinese retail market 10 years ago.

　　"They do have the intention to purchase us, but we are still involved in negotiations," said a Nextmart staff member in the general manager's office who refused to provide further information. Carrefour officials were not available for comment yesterday.

　　Meanwhile, Wal-Mart, the world's largest retailer, will hold a grand opening ceremony for its first outlet in Shanghai's Pudong today.

　　More and more foreign retailers, including Metro AG, Lotus and Auchan, stepped up their expansion in Shanghai as well as in other parts of China since the government lifted market restrictions as part of commitments made to the World Trade Organization.

　　As a result, the competition among the foreign giants and their domestic counterparts is becoming more intense.

　　The 5-kilometer commercial zone around Wal-Mart's new store, for instance, is already crowded with hypermarkets and supermarkets such as Carrefour, Lotus and Hualian.

　　"We do not agree with the notion that fierce competition will damage the market for everyone,"said a Lotus public relations official."We all have different targets. We're taking advantage of our great number of stores, good supply chain and local distribution centers to maintain our inexpensive prices."

　　"Our entry will drive the market to a more advanced stage. Shanghai's market is still growing, giving us opportunities, although we still have a lot to learn," said Li Qingquan, Wal-Mart's East China director.

　　Shanghai's total retail sales posted a 10.3 percent year-on-year increase over the first six months of this year, growing to 140.93 billion yuan.