LONDON (Dow Jones) - Wal-Mart Stores on Tuesday said it was making its first foray into Central American retailing, buying a stake in the region's top retailer from Dutch retailer Royal Ahold .

Wal-Mart (WMT) said it's buying a 33.3% stake in Central American Retail Holding Co. for an undisclosed price from Ahold (AHO). Wal-Mart will make additional investments in CARHCO over time toward getting a majority stake in the company.

The Paiz family of Guatemala and Costa Rica's Corporacion de Supermercados Unidos hold the rest of the company.

"We believe our investment will add strength to the partnership by helping to keep prices low for consumers and will offer new opportunities to suppliers in the region for additional business development," said John Menzer, chief executive of Wal-Mart International.

It has 363 supermarkets and other stores in Guatemala, El Salvador , Honduras , Nicaragua and Costa Rica , with 23,000 employees.

It had $2 billion in 2004 sales, Wal-Mart said.

UBS and Dresdner Kleinwort Wasserstein advised Wal-Mart, while Credit Suisse First Boston advised the Central American partners of CARHCO.

Ahold, the owner of U.S. supermarkets Giant-Landover and Stop & Shop, has been paring holdings since an accounting scandal.

Dutch-listed Ahold shares slipped 0.5%.

Wal-Mart, a component of the Dow industrials, closed at $44.01 on Monday.

(END) Dow Jones Newswires

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