By Rory Gallivan

LONDON--The U.K.'s Home Retail Group PLC (HOME.LN) is in advanced talks about selling its home-products store chain Homebase to Australian diversified retailer Wesfarmers Ltd. (WES.AU) for 340 million pounds ($492.5 million).

The two companies are "currently finalising transaction documentation," though "discussions are ongoing and there can be no certainty that a transaction will be agreed," Home Retail said on Wednesday.

The announcement comes the week after Home Retail said it rejected an offer for its other division Argos, which sells TVs, furniture and other products, to the supermarket group J Sainsbury PLC (SBRY.LN).

Selling Homebase, which sells DIY products, furniture and other home products, would allow Home Retail Group "to focus on Argos and its Transformation Plan, with an improved balance sheet and financial position," said Home Retail Chief Executive John Walden.

Wesfarmers operates retail brands in Australia including clothing and homewares retailer Target and supermarket chain Coles.

-Write to Rory Gallivan at rory.gallivan@wsj.com; Twitter: @RoryGallivan

(END) Dow Jones Newswires

January 13, 2016 14:00 ET (19:00 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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