Alibaba seals deal for AliExpress Russia
Inside Retail Asia
June 10, 2019
Alibaba Group has formed a US$2 billion joint venture AliExpress Russia to create a major e-commerce venture in the Russian-speaking market.
Alibaba and the Russian government-backed RDIF sovereign wealth fund will each invest US$100 million in the venture which will absorb Alibaba’s existing AliExpress business. Russian mobile phone network Megafon will sell its 9.97 per cent interest in internet group Mail.ru to Alibaba in return for a 24.3 per cent stake in the new JV.
In return, Mail.ru will roll its Pandao e-commerce business intoAliExpress Russia and contribute $184 million in cash for a 15 per cent share.
AliExpress Russia has been created to expand the three companies’ e-commerce offer in both Russia and neighbouring countries.
Documents to create AliExpress Russia were signed last week. The company will be jointly run by Alibaba and Mail.ru, each of which will appoint a CEO...