Walmart has reached an agreement with a Chinese company to buy Medivation, a pharmacy chain that has been a fixture in Walmart’s business in China.
Medivation, which is based in Beijing, was founded in 1997 and is one of the largest pharmacy chains in China, with more than 2,500 pharmacies, stores, and offices.
The company has more than 6,400 pharmacies in 50 countries and has expanded into more than 100 countries.
Walmart announced the acquisition last week, the first major acquisition of the company’s Chinese operations.
The deal was announced Tuesday by Walmart CEO Doug McMillon.
Walmart announced earlier this month that it was closing two Chinese stores, the second of which was shuttered earlier this year.
It also announced plans to open new stores in Taiwan, Hong Kong, and the Philippines.
The U.S. has a total of about 7,000 Walmart stores in China and is expanding to new markets like Hong Kong and Macau, the company said.
Walmons sales in China have grown steadily in recent years.
It reported a 6.5 percent year-over-year gain in the third quarter of 2019, up from 4.7 percent a year earlier.