Brazilian retailer Companhia Brasileira de Distribuicao (CBD) is reportedly in talks to buy G Barbosa, the last Brazilian unit of Dutch retailer Ahold.

Negotiations are believed to have begun back in February although the deal is expected to face a number of hurdles, including negotiating a price for the supermarket chain, sources told Dow Jones News.

CBD, Brazil’s largest supermarket group, is believed to be keen to expand its presence in Brazil’s northeast, where G Barbosa has 32 stores in Bahia and Sergipe.

Ahold’s other Brazilian supermarket unit, Bompreco, was sold to Wal-Mart last month. The two units were originally to be sold together to Wal-Mart, but Ahold was forced to sell the two chains separately following a ruling by Brazil’s antitrust regulator.