MONDAY BUSINESS : PREVIEW: Some of the major business and economic events scheduled for this week : French Retailers May Merge to Form Wal-Mart Rival

Carrefour plans to combine with French food store rival Promodes, creating the world’s second-biggest retailer to fend off increasing competition from Wal-Mart Stores Inc., people familiar with the transaction said.

Together, France’s two largest publicly traded retailers would form a company with sales of more than $49 billion at more than 2,500 stores. The transaction, reported by newspaper Le Figaro, would be worth at least $13.9 billion, based on Promodes’ market value. The companies declined to comment, but an announcement was expected early today.

Wal-Mart’s acquisitions in Britain and Germany are forcing European rivals to cut prices. The Bentonville, Ark.-based discounter, which recently opened in Germany, is expected to target France next, analysts said.

The companies will be combined through the creation of a new company. The sources declined to provide details on how the transaction would be financed.

The transaction would create a company with earnings of about $1 billion and operations spanning three continents. Carrefour is Brazil’s largest.

France’s biggest companies are buying one another to boost their competitiveness since the introduction of Europe’s single currency this year. The euro makes it easier for other European companies to cross borders and makes the entire European market more attractive to companies outside the continent.

Recently, Banque Nationale de Paris has taken over Paribas. Also, France’s two biggest oil companies, Elf Aquitaine and Total Fina, are trying to acquire each other.