The deal will help the companies compete with Alibaba Group Holding Ltd. and JD.com Inc., which dominate a Chinese e-commerce industry projected to expand to $547 billion this year. Smaller operators are combining to gain scale and end costly battles for market share.
“They are following the footsteps of other company mergers as funding has become tight,” said Li Yujie, an analyst at RHB Research Institute Sdn in Hong Kong. “It’s not like they have irreplaceable resources, and hence investors are pickier in such a competitive industry.”
Full content: The Wall Street Journal
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