Amazon and Wal-Mart are planning to buy rival logistics company Sysco in a deal that could end up being worth as much as $8 billion, the Wall Street Journal reported on Monday.
The deal, expected to close within weeks, could boost Amazon’s ambitions to become a dominant force in the logistics sector by combining its warehouses and distribution centers with those of its biggest rival, Walmart, the Journal reported.
Amazon will also purchase the Syscom division, which supplies shipping and distribution companies with logistics services.
The two companies have been trying to expand their logistics footprint since they were merged in 2012, but have struggled to keep pace with competition from the likes of FedEx and UPS.
Sysco has a market value of about $1.8 billion.
The combined company, which is based in Italy, was valued at $1 billion in 2016.