This step will allow Google to deepen ties with China and strengthen its position in online trading, notes The Wall Street Journal. Cooperation will help both companies expand their retail presence in Southeast Asia, the US and Europe.
As part of the agreement, Google will buy American Depositary Receipts (ADR) JD.com for $ 40.58 each, which is a weighted average in terms of trading volume over the past ten days. According to the results of the additional issue, the American company will receive about 1% stake in the Internet retailer, a representative of JD.com said.
According to the research firm Analysys Ltd., in the first quarter, JD.com accounted for about a quarter of China’s e-commerce market in the B2C segment. The first position with 60% here is the Tmall platform owned by Alibaba. However, a year ago the share of JD.com was higher and amounted to almost 27%.