China’s e-commerce titan JD.com (NASDAQ: JD) is opening its wallet to grab a stake in a complementary business. JD.com has agreed to invest $800 million in newly issued ordinary shares in Chinese on-demand delivery company Dada Nexus (NASDAQ: DADA), the companies announced in a joint press release. By doing so, JD.com will gain a bare majority (51%) in Dada when the new investment is piled atop its existing holding in the company.
Once the deal goes through, JD.com should be committed for some time to that majority position — it has agreed not to sell or otherwise dispose of the shares it’s purchasing for a period of six months after closing.
Image source: JD.com.
