Seiyu Ltd. said Friday that Wal-Mart Stores Inc. of the United States will raise its stake in the retailer from 42 percent to over 50 percent by the end of the year, making it a subsidiary of the U.S. retailing giant.

An agreement between the companies in 2002 gave Wal-Mart the right to acquire over half of Seiyu by this Dec. 28.

Friday's announcement underscores the U.S. juggernaut's commitment to the Japanese market, despite its current difficulties here.