China’s JD.Com will invest $800 million to acquire 51% of Dada Group, according to Reuters.
- JD.Com is expanding its logistics business which boosted competition over larger rival Alibaba Group.
- JD earlier merged its online-to-offline unit JD Daojia with Dada in 2016 for a Chinese online grocery Dada-JD. It raised $500 million in 2018 from Walmart Inc. and JD.
- The Chinese firm also agreed to keep the shares bought in the deal for at least six months. It will not sell, transfer, or dispose of any of the stock.
- Dada shares jumped almost 19% while those of JD.com gained 0.5% prior to the bell.