The Walmart and Costco brands have reached a deal that will keep their respective businesses separate, as both companies are working on separate strategies to make their retail operations more integrated.
The Walmart-Coke deal is worth $2.9 billion, and will create 1,000 new jobs, according to the company.
The deal will also keep the companies separate by creating the nation’s second largest online grocery store and expanding its footprint in rural markets.
The company will also invest $600 million in new technology and training.
The Costco deal will bring together the two largest retailers in the country, with the combined store size expected to be 2,500 stores.
The deal will be subject to approval by the federal government, which will require that Walmart and the Costco reach agreements on technology and other matters before it can proceed.
It also must ensure that Walmart complies with the federal Buy American Act, which requires companies to pay a price for U.S. labor.
Under the deal, Walmart will buy back $1.4 billion in existing stock from Costco over the next 12 months, which would add to its stock holdings.
The total amount of stock the companies will buyback is $2,700 million.
Walmart will also buy back another $1 billion of stock that it purchased in 2013.
Costco has also agreed to buy back stock it purchased through its own stock purchase program for $1,000 a share.
The buyback will create about 1,200 jobs.
The company will have a second $2-billion purchase program, this time in which the two will share stock.
The $2 million in stock the two sides will share will be used to purchase $1 million worth of shares from each other.
“This is an exciting time for Walmart and our customers,” Walmart CEO Doug McMillon said in a statement.
“This transaction provides Walmart with a strategic partner and an excellent opportunity to build our combined presence in rural America, as well as expand our presence in cities like New York and Los Angeles.”
The Costco-Walmart deal comes just days after Walmart announced it would spend $1 trillion on acquisitions to help keep the business running, a massive move that was hailed as a major win for shareholders.
The acquisition was announced in January, as the company was struggling to stay afloat in the face of massive layoffs.
Walmart said in January that it planned to spend $3.6 billion on acquisitions, including a $1-billion deal to buy the American Apparel chain and a $600-million deal to acquire Jet.com, the online shoe retailer.
The combined company is expected to bring more than 6,000 jobs to the U.T. in a deal valued at $2 trillion.
Walmons stock was up 5 percent on Monday.
The Walmart deal is the latest in a series of acquisitions by Walmart, which has been looking for ways to diversify its business amid the global economy.
The retail giant has been expanding in the United States, expanding its presence in urban areas, and has also announced plans to expand into the lucrative online grocery industry.
The companies deal with Walmart comes as Walmart continues to work to expand its retail footprint, including in rural areas.
In addition to the Costco deal, Walmons parent company, Wal-Mart Stores, announced it was buying online grocer Amazon.com for $13.9 trillion.
The transaction, which is expected be completed this year, is the largest merger ever between two publicly traded companies, and could result in up to $100 billion in new wealth for both companies.