Japanese supermarket retailer Seiyu has confirmed that US retail giant Wal-Mart is to increase its stake in the Japanese company from 6.1% to 34%, making Wal-Mart Seiyu’s largest shareholder.

Wal-Mart is to pay ¥52.06bn ($424.1m)) for 192.8 million Seiyu shares on 27 December.

Seiyu, Japan’s fourth-largest supermarket retailer, gave Wal-Mart stock purchasing rights in May that could eventually give Wal-Mart a 66.7% stake by 2007, reported Dow Jones International.