SAO PAULO (Reuters) -Brazilian retailers Magazine Luiza and Americanas announced an e-commerce partnership on Tuesday and will each start selling their products on the other's respective retail platform. 

Shares in Magazine Luiza were up 3% in the afternoon, while Americanas rose more than 5%. Brazil's equity benchmark index Bovespa, which Americanas is not part of, was stable.

Americanas will begin to sell its products on Magazine Luiza's e-commerce platform from Tuesday, while Magazine Luiza will do the same on Americanas' platform in the next few weeks, the firms said in a joint statement. 

The deal is the latest of retailers joining forces in Brazil's e-commerce segment, which has seen an increasingly competitive environment this year as players, including Sea's Shopee, Amazon ( AMZN ) and MercadoLibre ( MELI ), expanded free-shipping policies and offered consistent promotions.

MercadoLibre ( MELI ) announced a partnership last month to sell Brazilian retailer Casas Bahia's products on its platform. Magazine Luiza itself has had an e-commerce partnership with China's AliExpress in Brazil since 2024.

Magazine Luiza and Americanas said they have a complementary portfolio, given Magazine Luiza's strength in electronics, household appliances and cell phones, and Americanas' operations in snacks, cleaning products and personal hygiene.