Updated May 19, 2018 10:37:55Walmart, the world’s biggest retailer, and its American arm Walmart Stores Inc, have announced a $3.1 billion merger that will see Walmart expand its retail presence in Canada.
The deal, which has not yet been formally approved by the Canadian government, is expected to see the retail giant merge with Canadian chain Walmart.
Walmart said it plans to invest $200 million in the Canadian market to open more stores and improve its product offerings.
The combined company will be based in Canada, which Walmart said is “a strategically important market with strong potential to grow”.
The combined entity will be responsible for “supporting” the Canadian economy, the company said.
Walmart also said it will begin offering its own e-commerce products in Canada in the coming years.
The company has more than 2,000 stores in Canada and is expected be the world leader in retail sales, according to the company.
Walton said the combined company would have access to Walmart’s online stores, including its online video, Walmart.ca and Walmart.com.
The Canadian government is also expected to approve the deal.
Walter Robb, Walmart’s chief executive officer, has been pushing the Canadian retail giant to take a more active role in the country.
“We are proud of our commitment to Canada and what we see as its unique strengths,” Robb said in a statement.
“Our goal with this transaction is to bring together the world-class retailer and the best online retailer in Canada into a new business, with more than 1,400 stores, in Canada.”
Walmart’s chief operating officer and president, Doug McMillon, said the merger would be a boon to Canadian consumers.
“[We] expect to see a tremendous positive impact on both our companies’ bottom line and our communities, with a combined Walmart and Walmart Canada expected to bring in an estimated $2.3 billion to $2,566 billion in revenue by 2025,” McMillon said.
“This is a great opportunity for Walmart to expand its footprint in Canada as a whole, to build an even stronger relationship with our Canadian partners and to bring more Canadians into our stores.”
McMillon said Walmart Canada will work closely with the Canadian Retail Association and the Canadian Chamber of Commerce to bring “additional benefits to Canadians”.
The company is also building a $1.9 billion headquarters and research and development facility in Toronto.
Walman’s Canadian headquarters will be located in the new Walmart HQ building, which opened in November.