Alibaba to buy Lazada for $1 bn

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HOME AEC BUSINESS WED, 13 APR, 2016 1:00 AM

Alibaba Group Holding Ltd agreed to buy control of e-commerce operator Lazada Group SA for about US$1 billion to tap growth in Southeast Asia, according to Bloomberg.

The agency reported from Hong Kong that China’s largest e-commerce operator will pay $500 million for new shares in Lazada and also purchase stock from existing investors, Alibaba said in a statement Tuesday. Lazada is currently controlled by Germany’s Rocket Internet SE.

“With the investment in Lazada, Alibaba gains access to a platform with a large and growing consumer base outside China, a proven management team and a solid foundation,” Alibaba President Michael Evans said in the statement.

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