US retailing giant Walmart has been given the green light to merge with US mining giant Cameco, in a move that will bring more US jobs to the region.
Key points:The merger will see more US retailers take part in the South China-China trade dealCameco will own 30% of the new conglomerateWalmart is the biggest US retailer in the region, with a $4.2bn ($4.6bn) market share in 2017Source: Bloomberg Businessweek articleUS retailers including Walmart, Target, Target and JCPenney are all part of the South-China-China Free Trade Agreement, known as the CFPA.
But in recent years, they have increasingly focused on China and have been accused of harming their own brands.
Walmart and Target have been pushing hard to sign the deal, which was launched in late 2015 to open a more competitive market.
Last year, Walmart announced it was closing 1,200 stores in China, a decision that prompted protests in China.
The merger with Camex, a leading US logistics company, is expected to take place in 2019.
In a statement, Walmart said the merger would give the company more opportunities to expand its operations in China and help the US retailer “connect with Chinese consumers”.
“The CFPAs vision is to provide the American consumer with more choice in where they shop and how they buy, as well as providing opportunities to build our footprint and help grow the company’s global brand,” Walmart said.
The US retail giant, which already has its own logistics company in China with a presence in Shanghai, has been working with the company to build its supply chain in China as part of its efforts to bolster its own presence there.
In a separate statement, Camex said the deal would create more than 1,400 jobs in the US.
“We look forward to continuing our close cooperation with Walmart and our global logistics partners, and will further expand our relationships with the American market,” the company said.
“As part of our commitment to open and secure the supply chain for the US and global markets, we are working closely with Walmart, the Chinese government, and our partners in China to achieve this vision.”
The announcement was welcomed by US President Donald Trump, who said the US would “take care of China”.
“We will not be giving up our great manufacturing base,” he said.
Camex and Walmart are part of a large Chinese-based conglomerate, CMI Group.
Walmart has more than a $2.7bn market share and is a member of the company, which also includes Amazon, eBay, Home Depot and Toys R Us.