Google to invest USD 550 million in China’s e-commerce site JD.com
Google announced to invest USD 550 million in China’s e-commerce site JD.com on Monday. The two companies have entered a strategic partnership to jointly develop retailing solutions.
Google and JD.com will collaborate on a series of strategic projects. They will jointly develop retailing solutions in a range of regions around the world, including Southeast Asia, the U.S. and Europe. By applying JD.com’s supply chain and logistics expertise, along with Google’s technology strengths, the two companies will jointly create the next generation retailing infrastructure solutions, aiming to offer helpful, personalized, smooth and convenient shopping experiences.
JD.com also plans to sell selected quality products in multiple regions through Google Shopping.
Under the agreements, Google will receive 27,106,948 newly issued JD Class A ordinary shares at an issue price of USD 20.29 per share, equivalent to USD 40.58 per ADS, based on the volume-weighted average trading price over the prior 10 trading days.
Google is stepping up its investments across Asia, where a rapidly growing middle class and a lack of infrastructure in retailing, finance and other areas have made it a battleground for U.S. and China’s Internet giants. Recently, Google took a stake in Indonesian ride-hailing firm Go-Jek. And it is said that someone has told Reuters that Google may also invest in Indian e-commerce company Flipkart.