Cofece rejects purchase of Cornershop by Walmart
Walmart de México reported that the Federal Economic Competition Commission (Cofece) notified its parent Walmart Inc. of its opposition to the purchase of the Cornershop home delivery application.
The subsidiary in Mexico of the US company reported last September that its parent company would sell Cornershop's businesses in Mexico and Central America, once it acquired the platform for 225 million dollars.
In a statement, Walmart de Mexico indicated on Tuesday that the group analyzes the scope of the resolution of the Cofece and the measures that the company will adopt.
We are sure that this operation is positive both for the competitive environment and for the consumer, and that drives the development of electronic commerce in Mexico.
The Cofece informed the CEO that due to legal procedures it will be until Wednesday when it gives details of the decision.
The transaction announced in September was considered by strategic analysts for the efforts of the largest retailer in the country to strengthen home deliveries and its presence in the incipient national e-commerce.
Walmex and Cornershop then announced an agreement under which the platform's customers could buy products at Walmex stores and clubs in Mexico at the same price as those sold in stores and physical clubs.
In March, the CEO published that, according to specialists, the agreement in Mexico had displeased some of the competitors' self-service companies that were already working with the application, since they anticipated risks of delivering strategic information to their main rival.
With the purchase of the app, which helps different self-service chains to pick up merchandise orders and make home deliveries, Walmart de México would have access to Cornershop's user base, which includes names of competitors' clients, addresses and user consumption patterns.
That information would pass into the hands of the country's main retailer and could be used for their benefit, according to the experts consulted.