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Dow Jones reports this morning that negotiations have fallen apart between Royal Ahold and Chilean retailer Cencosud SA regarding the sale by Ahold of its Argentinean supermarket company Disco SA

The two companies were in exclusive talks, but the exclusivity period ended last Friday. Ahold reportedly is seeking other potential buyers.

Disco has 237 stores in Argentina and has a 19.2 percent market share. Cencosud's Jumbo chain has a six percent market share in Argentina.

Cencosud recently bought Ahold's Chilean Santa Isabel supermarket chain for $94.5 million (US).

The sale of Disco and Santa Isabel by Ahold is part of its strategy of divesting non-core businesses as a way of getting its books in order in the wake of a multi-billion-dollar accounting scandal.
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