Walmart’s highway equipment is on the verge of a big comeback.
The retail giant just announced that it will buy a majority stake in a new subsidiary that will develop and market highway equipment for the US market.
The deal is worth an estimated $5.2bn and will see the acquisition of Channels for $3.5bn.
The company is set to spend $3bn in new capital to make the deal happen.
Walmart will also acquire the entire company from its parent company for $4.9bn.
It is the second big investment in the sector, following a deal in the UK that saw the company purchase a 50% stake in Channels.
The deal comes as the US is under increasing pressure to make improvements to its highway infrastructure.
Last year, a report found that US traffic deaths were the second highest in the world, after China.
While the US remains in the middle of the pack in the overall number of road traffic fatalities, it has been overtaking China to take the title as the most dangerous country in the US.
China has been working hard to improve its roads and its highways.
The country plans to spend more than $2.2 trillion on infrastructure projects over the next 10 years.
In October, President Donald Trump announced that the US will invest $1.2tn to help speed the return of the nation’s roads to the state of the art, according to the Department of Transportation.
As part of the plan, the Trump administration will create a National Highway Safety Administration (NHTSA) to oversee and fund highway and transit infrastructure projects across the US, as well as an infrastructure investment bank.
President Trump has also said he wants to spend an additional $1tn on highways and bridges by 2020, a goal that has been met with little success.