E-commerce giant JD.com has agreed to spend $800 million in purchasing the newly issued ordinary shares of Chinese on-demand delivery platform Dada Group, with the aim of becoming the majority shareholder.
Beijing-based JD.com intends to buy the shares at a price equivalent to Dada’s Friday closing price. After the transaction, which is still subject to meeting customary closing conditions and procedures, JD.com will own about 51% of Dada, according to a company statement released on Monday.
JD.com also agreed not to sell, transfer or dispose of any shares bought in the deal for six months after the closing, the statement added.
Founded in 2014, Dada began as a logistics firm offering short-haul intra-city delivery services. In 2016, it acquired JD.com’s JD Daojia unit, one of China’s early grocery delivery specialists.
Dada is also one of the major partners of JD.com’s delivery arm JD Logistics. The two firms inked a business cooperation deal in 2016, under which Dada would serve as a backup courier to deliver items the last mile to their final destinations at peak hours.
U.S.-listed shares of Dada closed up 4.10% at $30.50 on Monday while those of Baidu closed up 3.36% at $266.13 on the day.
Contact reporter Ding Yi (email@example.com)