Walmart plans to spend $6.5 billion buying goods from online marketplace Alibaba in its latest acquisition, the Wall Street Journal reported Monday.
The move comes as the U.S. company faces increased competition in the online shopping world, with retailers such as Amazon.com Inc. and eBay Inc. pushing the online retail giant to become more of a retailer.
Alibaba is a Chinese internet giant with about $2.3 trillion in revenue.
Its $6bn acquisition of a logistics logistics firm to manage delivery and logistics services for Walmart and Amazon, for instance, is expected to accelerate Walmart’s efforts to expand its online presence.
“The Walmart acquisition, in our view, represents an important step forward for Walmart,” Jeff Bezos, the CEO of Amazon, told the WSJ in a statement.
“We expect Walmart to be one of the largest online retailers in the world in the future.”
The move follows a string of acquisitions by Amazon, which bought online booksellers Wunderlist and Books.com in 2017.
In 2017, Walmart also purchased logistics company KFC, which supplies KFC restaurants around the world.
Walmart and KFC also signed a $1.6 billion contract to run a food delivery service in 2020.
Walmart has also been looking to expand in the digital space.
Last month, it launched its first-ever online store in China, and plans to open stores in more than a dozen other countries over the next year.