Chile’s Falabella buys Mexican e-retailer Linio for $138 million

Falabella, Chile’s second-biggest department store, this month acquired 100% of Mexican on-line retailer Linio for $138 million, from Germany’s Rocket Internet.

Based in Mexico City, Linio competes locally with Amazon, Walmart, and other e-tailers, for a market which represents around 5% of consumer spending.

Linio, which started operations in 2012, has operations in seven Latin American countries, as well as Mexico.

Based in Santiago, S.A.C.I. Falabella has online and offline retail platforms, and builds, operates and leases commercial premises in Argentina, Brazil, Chile, Colombia, Mexico, Peru and Uruguay.

Through its CMR division, the company provides credit and banking services, including current accounts, term deposits, mortgage and consumer loans.

Falabella was founded in 1889.

Rocket Internet, which in 2016 generated revenue of $2.5 billion, has e-commerce and venture capital operations in more than 100 countries.