With the $240 million acquisition of MyDeal, does Woolworths able to challenge competitors like Amazon?

From $Qantas Airways Ltd(QAN.AU)$ and $Zip Co Ltd(ZIP.AU)$ , $Woodside Petroleum Ltd(WPL.AU)$ and $BHP Group Ltd(BHP.AU)$ .

$Woolworths Group Ltd(WOW.AU)$ has announced its plan to acquire a majority stake of $MyDeal.com.au Ltd(MYD.AU)$ , which is a significant step for the retailer into the eCommerce space, where it aims to compete against big names including $Amazon(AMZN.US)$ , $Kogan.com Ltd(KGN.AU)$ , and Catch.

The offer price indicates an enterprise value of $243 million, with MyDeal's founder and CEO, Sean Senvirtne, to retain an approximate 20 percent interest in MyDeal and other key management shareholders.

With the deal set to "enhance marketplace capabilities, Woolworths and MyDeal will also be set to take on foremost Australian retail leaders $Target(TGT.US)$ Kmart, and Bunnings.

Woolworths Group CEO Brad Banducci said that the addition of MyDeal to Woolworths Group represents a further step towards delivering a more holistic customer experience in the food and everyday needs and materially expands woolies' marketplace capabilities especially in general merchandise.