JD.com Invests $190 Million in Electronics Retailer
JD.com announced it has acquired a 46 percent stake in Jiangsu Five Star Alliance and is collaborating with the company on new projects.
China's second-largest online retailer, JD.com Inc. (Nasdaq: JD), announced this week it has acquired a 46 percent stake in Jiangsu Five Star Appliance, a major electronics retailer.
The stake, worth 1.27 billion yuan ($190 million), was acquired from Jiayuan Chuangsheng Holding Group, the second biggest shareholder in Five Star, according to the statement.
Upon the closing of the acquisition, JD and Jiayuan said they will leverage each other's advantages to jointly create an online and offline omni-channel, intelligent new shopping experience for future retail.
In addition, JD is also providing Jiayuan with a loan of $154 million. JD said it hopes the investment will boost online sales by giving prospective buyers the chance to check products at Five Star stores before purchasing them online.
JD said it will use its leading capabilities in supply chain, logistics, storage, finance, and technology, and will conduct in-depth cooperation with Five Star in unbounded retail physical examination shops, sunken markets, supply chains, and other fields to create a classic landing case for unbounded retail.