Brazilian grocery retailer Companhia Brasileira de Distribuicao (CBD) is reported to have dropped out of the running to buy supermarket chain G Barbosa from Dutch retail giant Ahold.

CBD's president, Abilio Diniz, told a Brazilian newspaper that the company had withdrawn from talks with Ahold because the Dutch retailer wanted too high a price for the chain, reported Dow Jones International News.

Ahold has already sold one of its two Brazilian chains to US retail titan Wal-Mart as part of a move to divest a number of overseas assets in order to pay down debt. The Dutch retailer sold 120-store Bompreco to Wal-Mart back in March.

Brazilian competition authorities ruled that 32-store G Barbosa had to be sold separately to Bompreco as the two chains had too much market share in some parts of northeastern Brazil.