American retail giant Walmart has entered a definitive agreement to buy Latin American grocery delivery company Cornershop for $225m.
Cornershop is a Mexico and Chile focused online marketplace for on-demand delivery from supermarkets, pharmacies and speciality food retailers.
The deal, which will further boost Walmart’s omnichannel capabilities and growth in Latin American market, will see the US retailer sell the Mexican and Central American businesses of Cornershop to Walmart’s Mexico division Walmex.
The latest announcement follows Walmart’s recent investment in Dada-JD Daojia in China and the strategic alliance with Rakuten in Japan.
Commenting on the deal, Walmart International president and CEO Judith McKenna said: “We are focused on making life easier for customers and associates by building strong local businesses, powered by Walmart.
“Cornershop’s digital expertise, technology and capabilities will strengthen our successful businesses in Mexico and Chile and provide learning for other markets in which we operate. This is an opportunity to leverage both of our brands, as well as Walmart’s strong supply chain and store network.
“Combining Cornershop’s innovative, crowdsourced delivery platform with Walmart’s unique assets will allow us to accelerate growth for both companies, delighting our customers by saving them both time and money.”
Following completion of the transaction, Cornershop’s three founders, including CEO Oskar Hjertonsson, chief operating officer Daniel Undurraga, and chief technology officer Juan Pablo Cuevas, as well as their teams, will continue to manage the business.
The three-year-old start-up Cornershop will continue to run as an open platform.
The transaction, which is pending receipt of regulatory approval, is scheduled to be completed at the end of the year.
Walmart manages more than 11,200 stores under 55 banners in 27 countries and eCommerce websites and clocked revenue of $500.3bn during the 2018 fiscal year.