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Woolies Takes on Amazon

Woolworths Group Ltd share price is in the green on Friday after the company announced its intent to acquire ASX-listed online marketplace operator MyDeal.com.au Ltd.


By the end of trading, the Woolworths share price traded at $35.35, 0.48% higher than its previous close.


For comparison, the S&P/ASX 200 Index (ASX: XJO) is up 1.05% right now. Meanwhile the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) is 0.32% higher.


The Woolworths share price is lifting after the company announced its plan to acquire an 80% stake in MyDeal for around $218 million.


It has offered to purchase shares in the online retailer for $1.05 apiece, The Motley Fool Australia reported this morning.


That represents over a 63% premium on the MyDeal share price’s previous close.


Meanwhile, the ASX 200 and the consumer staples sector are shaking off yesterday’s losses. They dumped 1.65% and 3.71% respectively on Thursday as warning bells sounded for retailers in the US.


This could be due to the easing of expected restrictions in Shanghai – where most of China’s current COVID-19 outbreak is centred.


That’s good news for the global market. Fewer restrictions in the region could help bolster economic growth.


China’s unemployment rate reached 6.1% and its total retail sales slumped 11.1% as the nation suffered through lockdowns last month, the National Bureau of Statistics of China announced earlier this week.