(Yicai Global) June 18 -- Google and China’s second-biggest e-commerce player, JD.Com, will jointly explore online retail opportunities in overseas markets following a USD550 million partnership agreement.
The alliance could lead to Google listing JD products on its online shopping platform in Southeast Asia, the US and Europe, the Beijing-based retailer said in a statement. The deal will not affect JD’s China-related operations for now.
The Californian company will purchase more than 27 million newly issued Class A shares in JD at USD20.29 per share, equivalent to USD40.58 per American depositary share according to the average trading price over the last 10 days.
JD aims to leverage global alliances with major players to bolster efforts to expand outside of China’s borders. Alibaba Group Holding, the key adversary of JD’s main backer, Tencent Holdings, has forged similar tie-ups in overseas markets especially in Southeast Asia where it operates online sales platform Lazada.
The move marks Google’s second major foray into e-commerce in the space of a week. The Alphabet unit has agreed a deal with Carrefour to include products from France’s biggest retailer on its new local shopping site and on smart devices.
Editor: William Clegg