Mexican retailer Soriana is to buy the domestic and US stores of rival Grupo Gigante in a deal worth US$1.35bn.

Soriana will acquire Gigante's 199 Mexican stores, plus seven outlets in Los Angeles.

Soriana, Mexico's number two retailer behind Wal-Mart, said the deal would bolster its presence in Mexico City, where Gigante has some 47 stores.

The deal, which remains subject to anti-trust approval, also includes 12 Gigante distribution centres, among other assets.