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Wal-Mart Stores (Bentonville, Ark.), the world's largest retailer, has purchased a $46 million share of The Seiyu Ltd., one of Japan's leading retail chains.

As part of the agreement, Sumitomo Corp. (Tokyo), already Seiyu's largest shareholder, will increase its holding in the retailer.

Seiyu operates more than 400 stores, primarily supermarkets and general merchandising stores, throughout Japan. It has annual sales of roughly $8 billion. It is an active promoter of environment-friendly policies and was the world's first retailer to be awarded an ISO certification in recognition of its environmental policies at its multi-format stores.

The partnership is expected to give Wal-Mart its first solid platform in the Japanese retail market. And Sumitomo's increased participation would leverage that trading company's management and market expertise in Japan.

“We are excited about the long term potential of the Japanese market,” said John Menzer, president and ceo of Wal-Mart International. “We are attracted to Seiyu by its management strength and experience. Seiyu and Wal-Mart share a strong commitment to providing value and satisfaction to our customers.”

The three companies say they plan to study and develop retail business opportunities in Japan.