BEIJING (dpa-AFX) - Alibaba Group Holding Ltd. (BABA) is in discussions with South Korea's E-Mart to create a joint venture to strengthen its position in the nation, according to several media reports.
Under the estimated $4 billion deal, AliExpress International and Gmarket will form a joint venture, with each company holding a 50 percent stake, as per the stock exchange filing by E-Mart, which was confirmed by Bloomberg News.
The reports further stated that the joint venture would compete against local rivals, such as online search portal provider Naver Corp. and technology company Coupang Inc. (CPNG).
The decision comes as Alibaba is struggling to grow its business, forcing the company to streamline its core businesses by investing in promising growth areas.
Last week, the e-commerce platform entered into a deal with Youngor Fashion Co. to sell its Intime department store business to the latter for about $1 billion.
During the pre-market hours, Alibaba's stock is trading at $85.87, up 0.41 percent on the New York Stock Exchange.
Copyright(c) 2024 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2024 AFX News
