FILE PHOTO: Walmart’s logo is seen outside one of its stores in the Chicago, Illinois, usa, on November 20, 2018. REUTERS/Kamil Krzaczynski/File Photo
SANTIAGO (Reuters) – Walmart and the delivery of the app Cornershop have ditched the plans to the Mexican anti-trust officials have denied the deal earlier this month, the Cornershop is a co-founder Oskar Hjertonsson, said on Twitter.
Walmart struck a deal to buy the popular app, for $225 million, in an effort to encourage the development of an e-commerce platform ambitions in Mexico, the retailer’s primary markets, and are better able to compete with the Amazon.com online.
Cornershop-the Hjertonsson, confirmed late on Wednesday that the deal was off.
“We have to respect their decision, and there is no turning back,” he said on Twitter, and he advised his followers to “Remain calm and to have more avocados.”
Walmart couldn’t immediately be reached for comment.
Reuters reported exclusively last week that the Mexican officials have blocked Walmart Inc’s move to buy the Cornershop, because they are not able to guarantee a level playing field for competitive retailers, in which customers use the app to order groceries and other goods.
Cornershop work in Mexico and Chile, the promotion of the app, as well as providing the delivery of “groceries to your door in an hour,” retailers such as Costco Wholesale Corp, Chedraui and Walmart. These costs are the retail chains, and a commission for their services.
The deal would Walmart be in the unusual position of being in possession of an on-line platform for the sale of their own goods along with the products sold by the competitors, with the possibility of having access to information about orders that have been placed by competitors.
That raised a red flag in front of the regulators in Mexico, where Walmart’s Walmex unit is in a dominant bricks-and-mortar retailers. Walmex operates 2,459 retail stores in Mexico, and is the country’s largest supermarket chain by far.
Reporting by Dave Sherwood; Editing by Chizu Nomiyama