Japanese retailer Aeon and a unit of Thailand’s Central Group are thought to be considering a bid for Indonesia’s Matahari department stores.

Private equity firm CVC Capital Partners owns a major stake in Matahari’s retail division, and reports suggest it is seeking as much as $3.5bn (£2.23bn) for a buy-out.

Aeon has shown increasing interest in the southeast Asian retail market, having acquired 26 hypermarkets from Carrefour in Malaysia last year.