The US store chain - Wal-Mart Stores Inc (NYSE: WMT) announced its intention to buy the online retailer Jet.com for $ 3 billion in a deal that will allow the network to make the best competition to Amazon (NASDAQ: AMZN) and other commercial online sites.
Wal-Mart said it would pay $ 3 billion in cash, with a portion of the amount to be paid in installments. Over time, Wal-Mart will also pay an additional $ 300 million in shares.
Jet.com was launched by Marc Lore in July last year. The original site strategy was to offer big discounts and the lowest prices for certain names based on calculations that take into account factors such as the number of goods that the buyer puts in its basket.
However, three months after the launch, Jet has changed strategy and eliminated the subscription model.
"We are looking for ways to reduce prices, expand the range and offer the most simple and easiest way of shopping because our customers want this," - said the director of Wal-Mart, Doug McMillan. In the last week, the Wall Street Journal reported that Wal-Mart is in talks to buy the online retailer.
Despite the fact that Wal-Mart and Jet will keep their brand names, they will use common technologies to develop new proposals, according to Wal-Mart.
The online business of Wal-Mart grew with the slowest pace in a year in the last quarter. The sales of the division totaled $ 13.7 billion in 2015, according to Internet Retailer research firm.
As for the US stock market, it started the Monday trading with a growth.
Six of the ten major industry sectors of the S & P went into negative territory following the health sector companies which lost 1%.
Meanwhile, the index of energy companies sector gained 1.71 %. The share cost of oil giants Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX) has increased by about 1.5 and 1 %, respectively, which gave impetus to the S & P index.
By 17.45 GMT, Dow Jones fell 0.06 % to 18533.09 points, S & P 500 fell 0.07 % to 2181.33 points, and Nasdaq Composite fell 0.26 % to 5207.44 points.