Uber’s (NYSE: UBER) acquisition of Mexican grocery delivery startup Cornershop was approved on Monday by Mexico’s Federal Commission of Economic Competition (COFECE).
The approval from COFECE was the last part of the acquisition. Terms of the deal, which gives Uber a majority stake in the company, were not disclosed.
The acquisition furthers the expansion of Uber’s strategy of groceries delivery to millions of Uber users around the world and increases Cornershop’s resources and capabilities in Mexico, the company said in a release.
“Uber and Cornershop will be committed to powering delivery services that support local commerce and communities, all the more important during moments like the one we face today,” said Eduardo Donnelly, Uber Eats general manager, Latin America.
Cornershop, which launched in Chile and Mexico in 2015, is an online and app-based platform that allows consumers to browse and buy products from local supermarkets, independent grocers and specialty stores for on-demand and scheduled delivery.
Cornershop currently also operates in cities in Peru, Brazil, Colombia, Canada and the United States. In May, Cornershop began operations in Miami and Dallas.
San Francisco-based Uber initially announced plans to acquire Cornershop in October 2019. Uber’s acquisition could mean that the company is expanding its ability to deliver not only prepared food from restaurants, but also groceries and pharmaceuticals, according to analysts.
Walmart attempted to buy Cornershop outright for $225 million in 2018 and resell the company to its Mexican subsidiary. Mexican regulators blocked the deal for antitrust reasons.
Cornershop Mexico will continue to operate independently until the closing of the investment, which the companies expect will occur this week. After that closing, Cornershop will continue to operate under its current leadership, reporting to a board with majority Uber representation.
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