Home Depot, the world's biggest DIY retailer, has set up a team to explore opportunities for international expansion, with Europe top of its wish list.
Chief executive Bob Nardelli revealed the existence of the team to a group of investors at a recent meeting. It is understood to be headed by a former Lehman Brothers mergers and acquisitions expert.
Analysts believe Home Depot will be looking with renewed interest at Kingfisher, which will become a pure DIY business following the demerger of its electricals business next year.
Nardelli told investors that if Home Depot aims for Europe, it will only look at acquisition and not greenfield expansion due to space restrictions.
One analyst, who asked not to be named, said: 'This puts Kingfisher firmly in the frame, and possibly LeRoy Merlin in France.'
A Home Depot spokesman would not confirm the existence of the team.
Two years ago, Home Depot International chief information officer Gary Jones said Home Depot hoped to be in Europe within a year, but subsequent trading difficulties in the US forced any such plans onto the back burner.
Home Depot generated sales of US$53.6 billion (£34.42 billion) last year.
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