The Australian supermarket group Woolworths is among those considering the sale of Foster’s Group’s hotel, pub and gaming business.

Woolworths, along with its half-owned subsidiary MGW Hotels, is reported to be interested in the A$1 billion (US$670m) business, but reports from Australia’s press said the advance may receive only a lukewarm reception given Foster’s fears of the growing power of the country’s retailers.

The Australian Financial Review said Woolworths is particularly interested in the 50 hotels in Queensland, which comprise a large chunk of the 130 hotels in Foster's Australian Leisure and Hospitality division.