A new purchasing alliance formed in Mexico to help retailers compete with Wal-Mart has been given the go-ahead by competition authorities.

The new entity formed by Mexican retailers Gigante, Soriana and Comerci had earlier been deemed anti-competitive on fears it could induce price-fixing, but the Federal Competition Commission has overturned its earlier finding, reported the LA Times.

The joint purchasing venture is called Sinergia and is intended to enable its members to counter the purchasing might of Walmex (Wal-Mart de Mexico).