Airplane flies over a Wal-Mart signboard in Mexico City March 24, 2015.
Reuters/Edgard Garrido/File Picture
<articleLocation” > Wal-Mart Stores Inc stated on Monday it would offer its Chinese e-commerce business, Yihaodian, to China’s JD.com Inc and produce a tactical alliance that could help increase Wal-Mart’s company in China. Under the deal, JD.com will issue about 145 million new class A shares to Wal-Mart, representing about 5 percent of its overall shares. Wal-Mart took a stake in Yihaodian, which deals with wealthy female customers, in 2011 prior to taking complete ownership last July.
As part of the agreement, JD.Com will now manage the Yihaodian brand and site, while Walmart will continue to operate the Yihaodian direct sales company and will sell on the Yihaodian marketplace. The offer will provide Walmart access to JD.Com’s online traffic and expand its reach into the Chinese market. Sam’s Club China will open a flagship store on JD.Com and use its shipment network, the business stated. Walmart’s China stores will be listed as a preferred seller on JD.com’s crowd-sourced platform, O2O JV Dada.
” [JD.Com]. has a really complementary company and is a perfect partner that will assist us offer engaging brand-new experiences that can reach substantially more consumers,” said Doug McMillon, president and ceo of Walmart in a statement.
Walmart’s monetary adviser on the offer was Morgan Stanley & & Co. LLC and its legal advisor was Morrison & & Foerster LLP. JD.com’s legal advisors were Orrick Herrington Sutcliffe LLP and Han Kun Law Workplaces. (Reporting by Sruthi Ramakrishnan in Bengaluru; Additonal reporting by Rishika Sadam and Liana B. Baker in San Francisco; Editing by Anil D’Silva and Cynthia Osterman).