Retail giant Wal-Mart is buying electronics retailer Walmart Electronics for $11 billion.
The deal will create a global electronics giant and make it one of the world’s largest retailers.
Walmart CEO Doug McMillon says the deal is a “transformational investment” that will create jobs and boost the company’s global competitiveness.
“Walmart has always been focused on building an economy that works for all of our customers,” he said.
McMillon added that the deal will add about 300,000 jobs and create more than 1.2 million new full-time and part-time positions.
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The announcement is a huge boost for Wal-Marts brand, which has been struggling to stay afloat amid stagnant consumer spending and declining sales.
Last year, the company reported a $3.9 billion loss and said it was on track to miss the $4.6 billion revenue mark this year.
But it also said it would add about 1.6 million jobs by 2021, which is the companys second-highest number ever.
At the time, Walmart CEO Doug McLane said that the company would “revisit” its strategy and focus on making the products and services that consumers want.
For the past several years, Walmart has struggled to make a profit and has seen its stock tumble more than 30% in 2016.
Its shares are currently trading at about $20.30, down about 7% from last year’s price.
With the deal, Walmart will acquire the electronics and home furnishings giant for $12.5 billion.
The company said it will make $8 billion in revenue in the first year, while adding $1.3 billion in operating and other expenses.
Wal-Mart said that it will add jobs in its distribution network, and will invest $2 billion in technology.
It will also increase the size of its international workforce by 1,000 positions and increase its workforce in the retail and hospitality sector by more than 3,500.
And it will expand its digital business, including its online business, by 1.5 million workers.
Some analysts have questioned whether Walmart can survive as it has lost money and its shares have fallen as much as 70% over the past decade.
In 2018, the retailer reported a loss of $2.4 billion, and its stock fell as much $40.40, or 5%, in after-hours trading.