Updated from 9:19 a.m.
reportedly agreed to cut the sale price of its supply unit by $1.8 billion -- or nearly 18% -- as turmoil in the credit markets hit financing for the deal.
The Atlanta-based home-improvement giant will now receive $8.5 billion for HD Supply, several media reports said Monday. Private-equity firms Carlyle Group, Bain Capital and Clayton Dubilier & Rice had agreed to buy the division in June for $10.2 billion.
The price cut isn't unexpected; Home Depot had said earlier this month that it was in talks to revise the terms of the transaction due to tightening credit conditions.
The Wall Street Journal
, the revised deal calls for Home Depot to retain about 12.5% of the supply unit's equity, and guarantee some of the debt issued by the banks to finance the deal.
Investors had feared that the deal wouldn't get done at all, jeopardizing a massive buyback the company planned to initiate with proceeds of the sale. Shares of Home Depot were up 60 cents, or 1.7%, to $35.28 in afternoon trading.