Chile’s Grupo Cencosud is considering buying the Peruvian assets of beleaguered Dutch retail giant Royal Ahold.

The two companies have signed a confidentiality agreement relating to this option, as well as to Ahold’s assets in Argentina. However, as yet, Cencosud has not actually made an offer for the Peruvian assets, reports Sabi. They include the Santa Isabela, Plaza Vea and Minisol chains.

Should Cencosud decide to make an offer, it could face competition from Wal-Mart, Carrefour, Saga Falabella and the largest domestic Peruvian supermarket operator, Corporacion Wong.

Cencosud has already acquired Ahold’s Chilean assets, its 99.6% stake in the 77-store Santa Isabel unit.