Walmart CEO Doug McMillon Image: Walmart

In September, Walmart announced it’s acquiring Cornershop — an on-demand shopping app that operates in Mexico and Chile — for $225 million. This acquisition was meant to boost Walmart’s operations in Latin America, but as it now seems, Mexican regulators have balked against the acquisition, arguing that it doesn’t guarantee a fair ground for Walmart rivals whose customers order via Cornershop. Reuters reported earlier on this matter.

Mexico’s Federal Economic Competition Commission (Cofece) opposed Walmart’s deal last week after several months of analysis. Walmart already has significant presence in Mexico, where its Walmex supermarket chain is the largest with 2,459 stores countrywide.

Image: Walmart

Before opposition, Walmart made a number of proposals to address regulatory concerns, including not allowing overlapping board members between Walmart and Cornershop, according to a 92 page document obtained by Reuters. But the retailer’s proposal got rebuffed by Mexico’s regulator, stating it was too weak to deliver a proper deal.

Walmart has said it’s responding to the block and that the deal would be positive for consumers and competition, although such deal may be hard to revive.

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